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Using Payroll Agents and Outsourcing: An Overview of the Federal Tax Arrangements for Outsourcing Payroll Responsibilities

Using Payroll Agents and Outsourcing: An Overview of the Federal Tax Arrangements for Outsourcing Payroll Responsibilities
Product Code - PYAU01
Speaker(s): Jerri Langer, Esq, COKALA Tax Information Reporting Solutions, LLC
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An overview of the different ways for tax purposes that employers may designate some or all of an employer's Federal employment tax withholding, reporting and payment responsibilities and obligations to others.  New Rev. Proc. 2012-32 has changes the rules for how employers can designate a reporting agent to make their payroll tax deposits. And, new Rev. Proc. 2012-33 has established rules for reporting agents to make EFTPS electronic payments on behalf of employers.  Reporting agents include payroll service bureaus, accounting services, franchisers, banks or other entities that are authorized to handle payroll matters for you. The IRS has also released new versions of Form 8655, Reporting Agent Authorization, and Form 2678, Employer/Payer Appointment of Agent, used to appoint agents under different arrangements to handle your payroll matters. 

Learning Objectives:  Employers may designate or enter into an agreement with a third party in which the third party agrees to take over some or all of the employer's Federal employment tax withholding, reporting and payment responsibilities and obligations. The following common third party arrangements will be covered in this program along with their pluses and minuses:

  • Payroll Service Provider (PSP)
  • Reporting Agent (RAF)
  • Internal Revenue Code §3405 Agent

Questions that will be answered in the session:

  • Depending on the type of third-party arrangement, who is ultimately liable for Federal employment taxes, or who may become jointly and severally liable for such taxes?
  • Can one company file employment returns and pay employment taxes for a consolidated group of companies?
  • What are the differences between the new Form 8655, Reporting Agent Authorization and the new Form 2678, Employer/Payer Appointment of Agent?
  • What to expect from the IRS when these forms are filed?
  • How do the new revenue procedures change the way we operate under these appointments?
  • How are PEOs different from other outsourcing arrangements?
  • Who can file Forms 941, Employer's Quarterly Federal Tax Return, and a discussion of special requirements when an outsourcer is used to file Form 941?
  • Who can file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return?
  • Who can make deposits and payments for employment taxes reported on Form 941?
  • What are the special powers of attorney needed to make EFTPS or ACH tax deposits under the new procedures?
  • Who is the employer for W-2 reporting purposes and an explanation of special filing requirements for different outsourcing arrangements?
  • Can filing of Forms 1099 and Form 945, Annual Return of Withheld Federal Income Tax, as well as the making of related tax deposits of pension or backup withholding be outsourced?  What about Forms 1042 and 1042-S for international payments?

Register quickly and easily online  to secure your space now. Or, please call 1-800-372-1033 option 6, then sub-menu option 1, and refer to date and title of conference. Lines are open Monday through Friday from 8:30 a.m. to 7:00 p.m. ET, excluding most federal holidays.

Don't miss this opportunity to hear a lively, dynamic presentation. Not only are Webinars an excellent way for you to stay current; with Bloomberg BNA you also get:

  • Quality. Count on it. Nothing is canned.
  • Objectivity. Bloomberg BNA provides you with the best and most objective information. Unlike other companies, we don't use our Webinars as a forum to sell outside solutions.
  • Affordability. Bloomberg BNA Webinars are inexpensive compared to the cost of travel to attend a conference. Plus, you may use a speakerphone and invite as many of your colleagues as you want to listen in-all for the price of a single registration.
  • Convenience. No airlines. No travel. No time out of the office.

In addition, you'll receive:

  • Personal attention. Once you've registered, send your questions in advance to and they'll be included in the program. You'll also have a chance to ask your questions during the Webinar.
  • Follow-up materials. You need no materials upfront to follow along to our live conference. But Bloomberg BNA always issues a follow up e-mail with contact information for our speakers, as well as other materials related to the topic.
  • 1.0 CPE or APA RCH credits by attending this Webinar. Find out how.


Bloomberg BNA is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors.  State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:

Prerequisite: No prerequisites required

Delivery Method: Group-Internet

Advanced Preparation: None required
Recommended CPE Credit:

Recordings of the program do not qualify for CPE credits. For more information regarding administrative policies such as complaint and refund, please contact our offices at 800-372-1033.

Jerri Langer, Esq, COKALA Tax Information Reporting Solutions, LLC

Jerri Langer
 is a nationally respected information reporting and withholding consultant who provides a wide range of tax advisory services to many Fortune 500 companies around the world.  She is a founding member of the Cokala Tax Group, an advisory services firm offering experienced, efficient and practical help in meeting obligations for tax withholding, payee documentation, tax information reporting, and related issues including income classification. She has twice been appointed a member of the IRS Commissioner's Information Reporting Program Advisory Committee (IRPAC), serving in 2009-2011 and  in 1999-2000.  Prior to Cokala, she served as a Director in Balance Consulting, an organization specializing in tax reporting and withholding compliance; and earlier as chief tax compliance officer of ProBusiness Services Inc.  Jerri learned much of her trade as a Director in Deloitte & Touche, where she gained a national reputation assisting clients in complying with domestic and international tax reporting and withholding requirements.  She received her JD and LLM in Taxation from the University of Florida - College of Law (1982) and is a member of the Florida and Michigan bars. Jerri authors the AAPA Guide to Accounts Payable published by Aspen in conjunction with the American Accounts Payable Association, an affiliate of the American Payroll Association, and she contributes to The Payroll Answer Book and The California Payroll Guide, also Aspen publications.  She is also the author of articles and commentaries which have appeared in a number of widely circulated publications; has been quoted in professional journals; and is a frequent lecturer around the country on these topics.