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Reasons Why You Should Integrate E- File Services into Your Payroll and Tax Filing

July 5, 2016 No Comments

Featured article by Sara Platter, payroll software developer and systems administrator for government tax filing systems

You shouldn’t wish for your company to be on the wrong side of the tax collector! You should also be punctual when filing returns to avoid high and unnecessary penalties. This is why your business needs an online filing system for you to efficiently save time and costs associated with manual filing of annual returns at the end of your financial year.

The E-File Services will let you file 1099 and the W-2 IRS/ SSA tax return forms. This tax filing software is therefore necessary in you business’s payroll needs because of the following reasons:

Third party involvement

Using the E-File services, you do not file taxes directly to the state. Your taxes will get to the state through a third party. The third party is a vendor specializing in tax remittances to the government. This is possible for them because they have state-of-the-art infrastructure with which the E- File 1099 software ETC is integrated with the IRS’s 1099-ETC. This makes submission easier.

Filing to IRS/ SSA

This software solution allows businesses to file returns electronically to the state or the government through IRS or SSA. You do not have to submit the forms personally to the government. Rather, you are responsible for preparing and mailing recipient copies to the employees.

Mailing information to employees

This is done directly by the third party vendor who remits the employees’ information to the government. The vendor is therefore responsible for mailing employee information, not you as the employer or accountant.

Remittance to the government

Once you have filed your tax information in the W-2 and/ or 1099 forms, you are required to send this information or forms to the third-party vendor. Your responsibility ends there and it will be the vendor’s role to remit your tax returns to the government.

No printing costs

Since you fill your E-File forms electronically, your business will not incur unnecessary costs of servicing printers, printing, buying ink and paper. This responsibility is transferred to your vendor who prints correspondences to your employees after filing tax returns to the government.

Security standards

The payroll software has integrated safety settings to keep your data safe online with your vendor or during transit. You can use the software on windows computer operating systems without fear of malware in the downloaded form of the software.

Automatic filing

The payroll software is configured to export data from its database to the 1099 or the W-2 forms filers. You do not have to enter any data manually. All that is required from you is clicking the right buttons on the wizard.

In conclusion, this software solution makes filing of returns easier. Despite paying a fee for using the service, you will be saved the cost of printing and mailing receipts to employees as the same will be done by the third party vendor operating tax remittance systems. Data verification and creation is also easily done with the system generally making payroll automation for tax filing possible.

Author Bio

Sara Platter is a payroll software developer and a systems administrator for the government tax filing systems. Her recommendations for use of E- File 1099 software ETC are lauded by many consultants in tax advisory and database management because of their efficiency.

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