How Does It Work?

September 2, 2015

How are quarter- and year-end forms (940, 941, W-2, W-3) handled?

Patriot Software will submit your 940, 941, W-2 and W-3 data to the proper tax agencies each quarter-end and at year-end. Just print out the W-2 forms to hand out to your employees. We’ll give you detailed info on where to buy blank W-2 forms so that you can print them out using your printer.

Please note: if you’re NOT a Full Payroll Service client, we’ll still give you access to the form data, but we won’t submit any information on your behalf.

When are my tax liabilities deposited?

Each tax agency may have its own deposit frequency. Based on the tax jurisdiction and deposit frequency you select, Patriot Software will file (“report”) your payroll tax liabilities at the correct time. During set-up, you’ll indicate the frequency of tax deposits for each tax.

When are my tax returns filed?

Each tax agency has its own rules about when tax returns should be filed. Patriot Software knows the timing and format at which your specific tax agencies require filings.

How does Patriot Software know when to file my returns?

With this payroll tax solution, we use the deposit frequency and general filing rules that tax agencies have set up to properly file your returns.

Do tax liability deposits that come out of my account go straight to the tax agencies?

No. When you accept a payroll, we’ll collect the tax liabilities then and hold them in escrow so they’ll be available when we need to deposit taxes on your behalf. In this way, you can better manage your cash flow, and we can ensure your liabilities are properly paid and on time.

When does Patriot Software debit money from my account for my payroll tax liabilities?

Once you process your payroll, you immediately receive an invoice; the invoice date tells when the tax liability funds will come out of your account. You should have the funds in your account at least one business day before the date on the invoice. (Note: if you ever run a same-day payroll, you must ensure funds are available that day for your liabilities.)

A word about insufficient funds…
We hope this will never happen… but in the case of insufficient funds, we’ll contact you right away to make you aware of the problem. We may limit your use of the software until the issue is resolved. Please refer to your service agreement for information on applicable charges.

We will not be responsible for banking charges or penalties you incur as a result of insufficient funds, nor are we responsible if we must pay your tax payments late due to insufficient funds.

How can I find out if my payroll tax filings and deposits were properly filed and deposited?

You can see which taxes we have deposited and filed on your behalf using various reports in the software. However, it’s good sense to follow up with the tax agencies to confirm the payroll tax deposits and filings are being made. Ultimately, it’s your responsibility to verify your taxes are being filed and deposited properly.

What if I receive a notice stating my deposits and filings weren’t properly handled?

There may be several reasons for this notice. The first is that you haven’t set up the proper deposit frequency. In this case, you should immediately change the deposit frequency in the software, and then contact the tax agency to resolve the issue. The second possibility is that we might have made a mistake. In that case, please call our Customer Support at (877) 968-7147. We’ll handle the corrections and take responsibility for all applicable penalties and interest.

Who’s responsible if I’m assessed for any penalties and interest?

With Patriot Software as your payroll tax filing solution, you can rest assured that we will cover all interest and penalties if we are at fault for an error. If the error was our fault, then we’ll cover all the penalties and interest. If the error was yours, then call the taxing agency and correct the errors. Make sure you remember to make any corrections in the payroll software to avoid repeating the error.