Payroll Tax Account Management
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      What to Expect When Working with Tax Agencies: Federal vs. State vs. Local  

      Tax agencies at the federal, state, and local levels have unique requirements and processes for handling notices, rate changes, and updates. Here's a breakdown of what to expect when working with each type of agency.

      📄 Federal Tax Agencies

      Notices from Federal Agencies

      The IRS sends notices regarding:  
      • Deposit Schedule Changes: Adjustments to the frequency of payroll tax deposits.  
      • Payment Issues: Alerts for missed or incorrect tax payments.  

      How to Handle Federal Notices 

      1. Review Notices Promptly: Verify deadlines and action items.  
      2. Update Deposit Schedules: Changes to federal deposit schedules can often be managed directly in your payroll system.  
      3. Resolve Payment Issues: Use the IRS online portal to address payment discrepancies or missing payments.

      If you receive an updated deposit schedule for your federal taxes, it is imperative to update this information in GoCo timely. Reach out to support@goco.io if you need support updating in GoCo Payroll Tax Settings module. 


      📄 State and Local Tax Agencies  

      Notices from State Agencies

      State agencies typically send notices about:  
      • Unemployment Tax Rates: Updates to your state unemployment insurance (SUI) rate.  
      • State Deposit Schedules: Adjustments to state payroll tax deposit frequencies.  
      • Discrepancies in filing and or payment transactions. 

      How to Handle State Notices 

      1. Review Notices for Rate or Schedule Changes: Note the effective date and ensure your payroll system reflects the updates.  
      2. Update Unemployment Rates: Promptly update SUI rates in your payroll software to avoid under- or overpayments.  
      3. Address Missing Payments: If the notice involves a balance owed, consult your payroll support or state agency for resolution.  

      To update information in your Payroll Tax Settings follow this GUIDE to keep your tax account information up to date. 

      Online Tools and Resources  

      Many state agencies offer online portals for managing accounts, such as:  

      • Viewing and downloading notices.  
      • Submitting rate updates or tax payments.  
      • Check if your state offers a portal, and ensure you or your payroll administrator have access.  

      Challenges with Local Agencies  

      • Mail-Only Notices: Many local agencies rely solely on mailed correspondence.  
      • Limited Online Resources: If no portal exists, you'll need to manage all updates manually via mail or phone.  

      ✍️ Key Takeaways for All Tax Agencies

      • Monitor Communications: Federal agencies like the IRS often use online portals, but state and local agencies may still rely on traditional mail.  
      • Act on Notices Quickly: Missing deadlines can lead to penalties or interest charges.  
      • Keep Accurate Records: Save all notices for future reference and compliance.  

      If you have received a notice GoCo has created a guide How to Resolve a Tax Notice but as always, if you need additional support or have questions reach out to support@goco.io 💚

      Published 11.22.24