Having payroll software does not tell you who is responsible for each step. The owner may assume the accountant submitted the payroll, while the accountant may be waiting for approval and the platform may be holding an incomplete run.
A clear division of work helps prevent these gaps. Start with your actual arrangement and write down who supplies information, performs tasks and confirms completion.
The business supplies and approves key information
Identify who provides hours, approved pay changes, new-hire information, employee changes and other relevant inputs. Establish how the information is delivered and who checks it before processing.
A standing payroll schedule does not resolve an incorrect rate or missing hours. Give changes a clear approval route and keep sensitive employee information in an appropriate secure system.
The platform performs the services enabled in the account
A platform may calculate payroll, support filings or initiate payments depending on the product, setup and authorizations. Do not assume every feature advertised by a provider is active in your account.
Check which bank account funds payments and which services are enabled. If the software displays a warning or requests an approval, assign someone to resolve it instead of assuming another person saw the notification.
The accountant’s role follows the engagement
Your accountant might calculate net pay for you to pay employees, prepare agreed filings, manage tasks in a customer-owned platform or reconcile payroll with the books. These are distinct responsibilities and should be specified.
Go Tax Dude supports payroll calculations, net-pay guidance and agreed reporting. We can manage agreed work through customer-owned Gusto, ADP or Paychex accounts. We do not provide our own direct-deposit service; third-party platform fees and our service fees are separate.
Use a responsibility sheet
- Inputs: who supplies and reviews hours and changes?
- Approval: who authorizes the pay run and by what process?
- Payments: who initiates employee and tax payments?
- Filings: which returns are included, and who confirms submission?
- Records: who sends final reports to the person maintaining the books?
- Exceptions: who handles a rejected payment or correction?
Do not leave a row blank because “the software handles it.” Identify the person who checks the result.
Keep the employer informed
The IRS guidance on outsourcing payroll explains that using a provider does not generally eliminate the employer’s federal tax responsibility. Retain access to relevant records and review filing and payment confirmations.
If a notice arrives, share it promptly through the secure channel. Do not assume a provider is already responding merely because it handles regular payroll.
Coordinate payroll with accounting
Go Tax Dude can discuss payroll support alongside bookkeeping and accounting. Our separate guide explains how payroll reports connect with the books.
Book a consultation to walk through your current arrangement. We will clarify the services, responsibilities and fees that fit your business.
General educational information. Accounting and tax treatment depend on your business and circumstances.