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Beware of Tax Scams as Tax Season Starts

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Both businesses and individuals can be subject to tax scams from criminals who often impersonate the IRS or other government agencies in an attempt to extract money. It’s an old trick, but it seems that the scammers get more sophisticated every year. Soon we’ll be in the middle of tax season, when we’re especially anxious about money and often easy prey for scammers.

According to the IRS, scammers may pose as IRS agents and target especially vulnerable taxpayers, such as older Americans, newly arrived immigrants and those whose first language is not English. But even more sophisticated individuals can be victims: criminals have been known to threaten CPAs with immediate suspensions of their licenses if they didn’t immediately send money, even though individual states, and not the IRS, license CPAs!

The IRS has also reported that some sophisticated scammers can fake a caller ID so it appears you are getting a call from the IRS. They even may copy official IRS letterhead for use in email or regular mail.

In a recent memo, the IRS says that fear is one of the principal tactics scammers use: “Many phone scams use threats to intimidate and bully a victim into paying. They may even threaten to arrest, deport or revoke the license of their victim if they don’t get the money.” It is true that some states will suspend the drivers’ licenses of those who are delinquent in their taxes, but that only happens after the state has exhausted all other collection methods over a long period of time.

The IRS notes that it will never:

  • Call you to demand immediate payment. The IRS will not call you if you owe taxes without first sending you a bill in the mail.
  • Demand that you pay taxes and not allow you to question or appeal the amount you owe.
  • Require that you pay your taxes a certain way. For instance, require that you pay with a prepaid debit card.
  • Ask for your credit or debit card numbers over the phone.
  • Threaten to bring in police or other agencies to arrest you for not paying.

If you think you are the victim of a scammer, you can contact the IRS with the “IRS Impersonation Scam Reporting” web page. You can also call 800-366-4484.

Copyright 2018

Investigating the Advantages of Outsourcing Payroll

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As fulfilled and engaged as your employees may be with their jobs, if they have any issues with their paychecks, it won’t take long for them to become frustrated. Some companies have dedicated payroll departments and others find it useful to outsource this process to one of many companies that specialize in payroll. How do you know which option is right for you? Here are some things to consider.

  • How big is your company? One of the biggest concerns when it comes to answering this question is how many employees your organization has on staff. However, the answer isn’t cut and dry. Small companies like to use payroll services so they don’t need to employ a dedicated payroll department. Larger companies like to use them to maintain consistency.
  • Do you need more than just payroll? There are other reasons to consider an outside vendor, especially if your small company also wants insurance or other services. An outside vendor may be able to meet a wide variety of your needs.
  • Are your employees exempt or nonexempt? Exempt employees are traditionally paid an annual salary. Nonexempt are usually hourly employees who receive hourly pay and qualify for overtime. The more complicated the payroll process, the more important it might be to outsource it.
  • How often is payday? Another thing to consider is how often you pay your employees. Salaried employees are frequently paid twice a month. Hourly employees might be paid every two weeks or every week. This is something a payroll service can work out with you to be the most effective for your type of business.

Do you have more questions about outsourced payroll? Call us today! 916-550-8174

Copyright 2018

Workers’ Compensation Audits: What You Need to Know

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Workers’ compensation audits—what are they and what do they mean for your business? Simply, they’re a yearly audit on your workers’ compensation insurance policy. The audit’s purpose is to ensure your business paid the correct amount in insurance premiums based upon the gross wages in a policy period. Read more