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Third Party Payroll Services

Third Party Payroll Services in Mumbai

Employers may designate or enter into an agreement with a third party in which the third party agrees to take over some or all of the employer’s Federal employment tax withholding, reporting and payment responsibilities and obligations. The following common third party arrangements are discussed in this section:

  • Payroll Service Provider (PSP)
  • Reporting Agent (RAF)
  • Section 3504 Agent
  • Certified Professional Employer Organization (CPEO)

  • Third Party Arrangement Chart The attached chart illustrates some differences in authority between a payroll service provider, reporting agent authorized using Form 8655, Reporting Agent Authorization (PDF), an agent appointed using Form 2678, Employer/Payer Appointment of Agent (PDF) and a CPEO identified using Form 8973, Certified Professional Employer Organization/Customer Reporting Agreement.

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