You can know that your taxes are collected and remitted accurately and on time when using Monograph Payroll. Our payroll partner, Check, calculates and remits taxes on your firm's behalf so that you can use that time to focus on other work.

Collecting and remitting are two separate steps in the process of complying with tax laws. Collecting is the process of Check obtaining money to cover your tax obligations; remitting is when Check passes that money on to the appropriate tax authorities.

In order for Check to do this on behalf of Monograph's Payroll Companies, Check needs to be authorized, which occurs during the onboarding process.

If you have not yet completed the Onboarding setup, please follow this link for more information.

To view the taxes that are calculated and collected for each payroll, navigate to Money > Costs > Payroll and go to the Payroll page. From there, select the payroll run to open the details and then click on the Taxes tab.

This will show a breakdown of all of the taxes that are being paid by the Company and Employee(s) for remittance to the applicable agencies.

Once the proper tax amounts have been calculated for payroll and your employees are paid, Check will work to deposit to the necessary Federal, State, and Local agencies accordingly.

That said, taxes can be deposited on many schedules and they range from highly frequent to once per year. Some common examples are:

The determining factor for deposit schedules is based on your (the employer's) total liability for Federal Income, Social Security, and Medicare taxes during a "lookback period" and generally lasts for an entire calendar year.

When determining whether the $100,000 threshold is met, monthly depositors consider only those taxes accumulated during the current calendar month, not any previous months. Semiweekly depositors take into account only those taxes accumulated during the current Wednesday-Friday or Saturday-Tuesday semiweekly period.

💡 If you receive any notices regarding deposit frequency changes, please forward these to Monograph and we will update the frequency for Check on your behalf.

Once the frequency has been established and the tax has been calculated, there are two ways that the payment can be deposited.

For new Companies (not new entities), Check will collect any previously undeposited taxes when starting in the middle of a quarter. The collection is scheduled for the first business day of the month following the company's start date.

Example: A company that starts on February 15th, will have a Mid-Quarter Collection processed on March 1st (assuming the first is not a weekend).

The collection usually includes:

Note: Because the Mid-Quarter Collection can include income taxes that are paid on a Monthly payment frequency, a company starting later in the month would still have the same due date. This ensures Check is properly funded for all pending tax payments and avoids late payment penalties.

During Quarter End processing, Check will balance all of the wages for the quarter against the taxes that have been collected. Sometimes there is a variance.

In these situations, Check will notify Monograph of the variance and the amount, and Monograph will reach out to your Payroll Admin. These variances can be positive or negative, meaning Check will either refund an over-collection or collect for an under-collection.

Note: Variances will be collected/refunded the Second Friday of the month following quarter close.

Most commonly, this occurs for Unemployment taxes. If the rate increases or decreases during the quarter, that can cause a variance between what was collected and what is owed.

If Company A had 10,000 in taxable wages in Quarter 1 and an Unemployment rate of 2%, Check would collect $200.00 in taxes.

But if Company A had a rate change to 2.5% that was added to Check's system on February 14th, then Check would have collected $100.00 ($5,000.00 * 2%) for the first half of the quarter and $125.00 ($5,000 * 2.5%) during the second half of the quarter, for a total of $225.00.

Since the 2.5% rate would have been effective on January 1st, the true amount owed by Company A would be $250.00 ($10,000 * 25%).

This would leave $25.00 owed to the Unemployment agency. Check would collect the $25.00 before making the Quarterly deposit.

Note: Quarterly collections for outstanding tax liability are still deposited timely.

While depositing issues don't happen often, there are a few issues that can arise.

After a Failed Funding, Check will not deposit taxes until the payroll is funded. If the payroll remains unfunded, Check will process a termination of services for the company. The termination will be processed 30 days after the funding failure occurs.

If a funding failure occurs in the last month of a quarter (March, June, September, December), the company will be placed into a held status and no tax returns will be issued.

If the company provides funds during the 30-day period, they will immediately be released from the held status and tax return processing will resume. Check will not be responsible for any penalties or interest that is associated with the delay.

If funding is not received within 30 days, the following process will be followed: