Tax Remittance

This article explains how Check manages tax remittance for employers, covering the timing of tax collections, payment schedules, and available resources to help track and manage tax liabilities. It provides key details on federal and state tax payment requirements and offers guidance on handling payroll changes that impact tax obligations.

Tax remittance is the process where employers deduct taxes from employees' paychecks and send that money to various tax agencies. This includes federal income tax, state income tax, local income tax, social security, medicare, federal unemployment, and state unemployment tax. Employers must remit payment in line with agency schedules regularly to stay compliant with tax laws. As a partner, Check handles the collection and payment of supported taxes for employers.

When payroll is processed, all tax amounts are calculated, and Check pulls the total for all supported taxes simultaneously. The actual tax payment due date does not affect this collection, except during regular balancing. Check sends the ACH file to collect tax amounts from the employer on the evening of payroll approval deadline, with funds drafted from the employer’s bank account the next business day. The time of day will depend on the employer's financial institution.

Tax due dates vary by agency, and Check ensures payment is made on or before the due date.

If you void or add a payroll after the initial run, there could be an overpayment or underpayment of taxes. Monitor the tax balance screen to manage these changes.

There may be tax amount that need to be collected prior to the close of the quarter. See Check's article on the Historic Liability Debit (HLD).