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Are You Paid Up?

Don't let payroll taxes get lost when you outsource.

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This story appears in the October 2006 issue of Entrepreneur. Subscribe »

Many business owners farm out time-consuming payroll tasks. If you do, be warned: Outsourcing payroll functions does not outsource your tax responsibilities.

"Often, when people out-source payroll, they think, 'I don't have to deal with [taxes] anymore,'" says Mary Ash, director at tax, accounting and business-consulting firm RSM McGladrey in Madison, Wisconsin. "That's when they can really get ripped off."

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