By nQativ Staff Writer
The Internal Revenue Service (IRS) and Department of the Treasury are proposing new rules to clarify the responsibilities and liabilities of third party payors, particularly professional employer organizations (PEOs). In part, the new rules seek to delineate the differences between agents and reporting agents, to define what a service agreement is, and to define who is responsible for paying and reporting employment taxes in a three-party arrangement.
The announcement appeared in the January 29, 2013 issue of the Federal Register. Click here to view the announcement. It begins in the third column of the first page.
The IRS and Treasury Department will accept written and electronic comments on the proposed regulations until April 29, 2013.