Tax Payments – Do you know where your tax payment is?

Who is responsible for paying payroll taxes when you use a payroll service like MinistryWorks — the service provider or the ministry? The Internal Revenue Service says that the ministry is responsible, even if they contract with a payroll service provider. Steep penalties and interest may be assessed against the ministry, regardless of the payroll provider’s involvement. Although you have the confidence of knowing MinistryWorks is making your payroll tax payments, part of your overall fiscal plan should include a periodic check of all tax payments.

Payroll tax checkup

Ministries can independently verify that their tax payments are being made to the IRS by their payroll provider. The Electronic Federal Tax Payment System is a free website offered by the U.S. Department of Treasury to securely view federal tax payment history. To set up an account:

• Have your Employer Identification Number handy (if your ministry needs an EIN, visit the EIN Assistant)
• Go to www.eftps.gov
• Click on the ENROLL tab and follow instructions

Be aware, your ministry’s banking institution information is a required field during the account setup process, because the site allows individuals and businesses to make online payments as well. Following initial enrollment, your ministry will be mailed your unique PIN number in about a week. Once you receive the PIN, go back to www.eftps.gov and click MAKE A PAYMENT —even if you just plan to view payment history — to log in. Ministries can also call EFTPS Customer Service at 800.555.4477 to start the process.

There's a discrepancy. Now what?

First, contact your MinistryWorks payroll specialist and describe the issue. If you need additional assistance contact the IRS at 1-800-829-4933.  

The information in this article is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. We strongly encourage you to regularly consult with a local attorney as part of your risk management program.