The Employment Tax Administration & Compliance Survey
In April 2009, Deloitte conducted a survey of payroll professionals that examined current approaches to payroll tax administration. The survey also explored the challenges and issues that companies face as they adhere to complex tax, legal and regulatory compliance. The survey attracted a broad range of professionals, including controllers, HR managers and tax directors, with an average of 19 years of experience across a variety of industries.
- Ninety percent of employers said that they outsource some aspect of their payroll operations.
- Eighty-eight percent of survey participants believe that they correctly capture most or all of the taxable fringe benefits paid to their employees.
- Thirty-eight percent of companies are burdened with receiving more than 50 payroll tax notices per year, with 26 percent of them receiving more than 150 notices.
Of those receiving payroll tax notices, 51 percent rely on their payroll provider to appropriately handle the notices.
- Forty-five percent of employers undergo a state or federal audit at least once a year.
Sixty percent of employers are very confident in the accuracy of their payroll systems ability to properly tax their employees’ wages.
- In light of the difficulty in tracking mobile employees, respondents disclosed that the two greatest motivators for compliance would be state enforcement, or a new law instituting a common day threshold for all states (responses to both were 29 percent).
Download the report attached below for the complete results.