|
|
|
|
Frequently Asked Questions
1. My business uses EFTPS. Doesn't this solve the deposit problem. Answer: EFTPS only moves the money from the Federal Reserve Bank to the Treasury more quickly. It has no effect on the process until the deposit is already made. The Payroll Trust Collection System is the EFTPS of pre-deposit withholding collection.
2. Why would a small business use PTCS since we get to use the money for a few days prior to deposit. Answer: First, the withholding responsibility of the employee was not designed as an investment fund even for a few days. Second, almost all employers, especially small and medium sized ones, have paid a penalty -sometimes more than once for inadvertent late deposit. On balance, relief from penalties, pending IRS approval, offsets any "income" from managed withheld funds. Besides, the lower administrative burden only adds to the advantages and benefits of PTCS.
3. It seems like the PTCS will take a lot of work to change the system. Won't the delay make the problem worse? Answer: PTCS requires changes at the banking and check printing functions of withholding tax collection. We have checked with banks and check printing companies and they say it is not only doable but relatively simple. All the information required to implement the PTCS is available to the employee on their pay stub. It's just a matter of sending it to the bank in electronic deposit or on the check.
4. As an employee, what effect will PTCS have on me. Answer: Absolutely none except you will know when you deposit your pay that the funds withheld for federal, state and local taxes, FICA and Medicare will be sent directly to the government. The system could also be used to transfer withheld pension, health care and other monies that are also under the control of the employer.
5. At the state tax revenue departments, how will the PTCS help us? Answer: The PTCS can be used for any withholding funds. If the Federal Government adopts or uses the system as an option for the employer, states can enact similar regulatory processes to avail of its benefits. Faster more dependable collection may be more important to the states at this time.
|
|
Send mail to
yvisa@attbi.com with
questions or comments about this web site.
|
