How do tax payments and filings work through UZIO?
Tax payments are impounded at the time your payroll is approved. These tax liabilities will be debited along with your payroll in a separate debit transaction. These tax liabilities are then sent to each respective taxing authority.
Note: For our clients based out of Colorado and Texas, the impounding process is not yet implemented. Therefore, if located in these states, UZIO will continue to debit and deposit taxes to the respective agencies, as per their deposit schedules (refer to Q3 for details on deposit schedules).
What is a Tax Impound?
A tax impound is a debit of funds associated with an approved payroll. These are typically seen the same day as the debited direct deposit liabilities. The total of the tax impound can be found on the payroll cost report provided upon approval.
When will my taxes be deposited?
Tax deposits are created depending on your company’s specific deposit schedule for each agency. Because each agency is different in when it’s frequency and deposit schedules it’s difficult to assign a specific day of the month that you’ll see these deposits occur. Below is a list of various deposit schedules and an estimate of when to expect the corresponding deposits:
- Quarterly deposits
- Typically due on the last day of the month following the close of the quarter
- Debits are scheduled any time within 2 weeks of the due date
- Example: Quarter 2 ends on June 30th, payments are due by July 31st, debits may occur any time between July 15th - 31st
- Monthly deposits
- Typically due on the 15th of the month following the close of the previous month
- Debits are scheduled any time within 3 business days of the due date
- Example: tax payments for the month of April are due by May 15th, debits may occur up to 3 business days before May 15th
- Semi-weekly deposits
- Taxes are due within 3-5 business days of the check date depending on the day of the week the check date occurs
- Debits are scheduled any time within 3 business days of the due date
- Example: the check date falls on a Monday, taxes are due by that upcoming Friday, debits may occur any time between Wednesday and Friday
Where can I review all tax payments and filings?
When running and approving payroll it is considered good practice to save the reports that correlate to that payroll for your records. To best serve this need you will want to download both the payroll cost report as well as the payroll register. The payroll cost report will map out all corresponding costs associated with the approved payroll, (I.e.: direct deposit totals, tax liabilities, garnishment totals etc.) and list the expected impounds. Whereas the payroll register will breakdown the totals by employee as well as a running total for the company.
If you’d like to view the total employer and employee taxes assessed during a given period of time, you can run either the Payroll Register Report or the Payroll Allocation Report. You can run these reports by following these steps:
- Click into the Reports tab along the top
- Along the left, open the Payroll Reports
- Select either the Payroll Register Report or the Payroll Allocation Report, whichever you prefer
- Follow the prompts to select what information you’d like included and to specify the date range of the report
Please note that clients can also log into their online tax agency portals to see what payments and filings we've made on their behalf.
What will I see on my bank statement?
Because UZIO does not directly debit the company bank account for taxes, you will not see the tax authority as part of the description on your bank statement when viewing these tax debits. The description will be specific to each approved payroll and will show UZIO TAX IMPOUND.