I have seen that in another country and the board likes it as it provide some assurance that there exposure to personal liability is reduced
How many of you out there, report to your board monthly that "all payroll taxes have been remitted".
Answers
As you rightly said, it is about getting assurance that they are not exposed to any liability, specially personal liability.
Thus, what we do for our clients in bookkeeping is when we submit the Financial Statements on monthly basis, that should have detailed Analytical comments for most of the unusual account balances and a schedule to each balance sheet, And the detailed P&L and Balance Sheet would have the date of remittance for all such statutory payments will be mentioned.
These details will include remittance of Sales Tax, Payroll Tax, etc.
Let me know if this makes sense to you or not.
yes, but does anybody formally report this to their Board?
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I haven't seen so far anyone reporting the remittance of payroll tax separately to the board.
In few of my clients, i have seen people having a submission every month for all statutory payments that will include payroll tax as well.
If you use an outside payroll service (i.e. ADP, Paychex, Paylocity, etc), they will send you a report every pay period stating that the State and Federal Payroll Tax are paid and the date that they are paid.
However, as far as reporting this to the Board on a monthly basis, no! I haven't ever done so. I have never heard that actually.
This is a very interesting, thought-provoking post.
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Risk Management