Payroll Tax FAQ: Answers to the Questions Employers Ask Most.

No. Business owners and administrators complete agency applications, because they request specific company information Netchex does not readily have. Once you are registered, send us the account numbers and rate notices and we handle the deposits and filings for full-service clients.

No. Owners and administrators set up employee tax withholding, including state withholding, unemployment, and any local taxes. We can offer written guidance from the American Payroll Association to support your decisions. We still recommend checking with your CPA or business attorney before you decide.

Yes. Account numbers make sure payments and returns post to the right account. Many agencies no longer accept payments or returns without the correct number, and some assess penalties for paper returns or checks. Send every account number during onboarding so nothing is delayed.

Forward frequency changes, rate changes, deposit requirements, credit balances, notices of balance due, and notices of discrepancy through NetHelp so we can update your account. Netchex does not process corporate tax returns, including excise, sales, and franchise taxes. Those stay with you and your accountant.

If you are a full-service client, we file your quarterly payroll returns for you. If you receive blank payroll tax returns, you can forward them to the Tax Department through NetHelp. We will confirm the account numbers, frequency, and other details for accuracy.

No. Federal and state taxes accrued before your transition to Netchex are remitted by your previous provider. If you believe those taxes were not paid on your behalf, submit a case to the Tax Department and include what you know about the dates and amounts.

Yes, for the quarter you start with us. SUTA and FUTA are paid and filed quarterly, so we deposit the full amount due for that quarter. Federal unemployment is due only when liability reaches $500, so your prior provider could also have refunded earlier quarters. Submit a case if that happens.

No. We begin filing quarterly returns within the quarter your first payroll runs with us, and we do not process returns for earlier periods. Your previous provider stays responsible for those, so get copies of everything they filed and a deposit history.

Where it applies, we participate in the SUTA Rate Exchange, but sometimes we do not receive the rate. An expired POA, an agency that does not participate, or a different spelling of your legal name can be the cause. Agencies notify employers directly, so upload each rate notice in Tax Settings to update your rate.

If we do not receive your assigned state deposit frequency, we assign the most frequent one. Review your Tax Verification Report and tell us about any change right away, because some agencies assess penalties when deposits do not follow the assigned frequency. We keep the initial frequency until you notify us.

Not for every deposit. Each quarter we provide a Reconciliation Recap that lists your liabilities against the deposits we made for you. If you need confirmation of one specific deposit, submit a case through NetHelp and ask the Tax Department to confirm it.

Send it to us right away through NetHelp. That includes notices of balance due and notices of discrepancy, along with any rate, frequency, or credit balance notice. The Tax Department reviews each one against your account, so keep the notice itself and any related agency correspondence ready.

Yes. We file W-2s for every employee with a balance in a given year, so submit all payroll history, including terminated employees, with your balances. Missing data leads to incorrect payroll tax returns and W-2s, which are harder to fix after the fact.

Yes. The Tax Department reports directly from employee profiles and the payrolls you process. A misspelled name, an invalid SSN, or a wrong address can cause agencies to reject filings or W-2s. Verify employee data early, and correct any erroneous payroll data so federal and state reports are right.

Yes. We include the data in your 941 reporting, collect and deposit the employer liability, and report it on Form W-2 if the provider does not. Ask your provider whether they report this information on year-end W-2 forms, so nothing gets reported twice or missed.

New York requires employers to provide disability benefits coverage, through the NY State Insurance Fund or a private insurer. You collect the contributions from employees. The deduction is withheld from paychecks and credited back to you on each payroll invoice, so you can remit it to your insurance carrier.

Washington L&I is based on hours actually worked. Employers may use earnings codes for hours that are not productive time, such as paid time off, and Netchex cannot tell which of your codes reflect real work. Mark which earnings codes record productive hours so only those count toward L&I.

Yes. Private plans can be set up differently from state-sponsored programs. For a state program, we collect and pay premiums and treat the liability as a tax. For a private plan, the amount may be a payroll deduction that you remit to your provider. Confirm the setup with your implementation manager.