Payroll Companies Anxiously Await Congressional Income Tax Plan
Time Is Running Out
As Congress debates the taxing structure for next year, payroll companies are getting worried.
Jim Medlock, with the American Payroll Association says congress needs resolve the fiscal cliff discussion soon. Medlock says it's very important that a decision comes soon.
Tax preparers might have to go back to the 2001 income tax rates, a table that has a lot of moving parts.
Medlock says every individual in the United States who is working will be impacted by the decision, and payroll companies do a lot of the work to make sure that their clients are properly taxed, and paid, something that the seeming deadlock in Washington will hamper after December 14th.
Medlock says if the payroll companies don't get any guidance from congress by mid-December, payroll mistakes, and revisions could cause some setbacks as preparers scramble to plug in new data.