Does Xero accept liability for errors in tax filings?
When I worked with the behemoth company, their system failed to process a batch of forms but successfully sent the tax money. I was fined tens of thousands of dollars for failing to file the forms even though the software showed I had (as evidenced by the money being taken out of the account and sent to the IRS). Does Xero accept full responsibility for its filings? The company in question did not and the IRS advised me that their contract is so air tight, nobody has successfully held them accountable for their errors.
Hi Heather, great question! Xero does not offer full service payroll. All of the payroll processed in Xero is done by the organization/business owner. There are a couple of options when it comes to how you make your payroll tax payments, but it is ultimately your responsibility to make the payments on time.
Here is the response that I received from Xero Support:
You can either make manual payments to the IRS for your federal and State taxes, or you can enroll for e-file and e-pay for future payments.
I’ve included links to the Help Center below for more information on both of these options. If you pay manually, you’ll need to mark your taxes as paid in Xero.
Xero Help Center: Print deposit slip and mark payroll taxes as paid
IRS Website: Pay your Taxes by Debit or Credit Card
e-file and e-pay:
Xero Help Center: Register to e-pay payroll taxes and e-file tax forms
EFTPS: Welcome to EFTPS
Thank you for reading!
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.