New Automated Payroll Tax Policy
I just had a phone call with Katie from "the office of the president" of Intuit. Although she was very kind, nothing she said helps me understand or wish to comply with this new automated payroll tax policy. I would like the actual president of Intuit to know how I (and many of your other small business customers) feel about this. I highly doubt this will ever get to him or her, but let’s give it a try:
Regarding automated payroll taxes: I cannot express deeply enough how wrong this decision from Intuit is for small business. I will speak for me, but I know your other small business customers fully agree with me. I have run my small business for 30 years. I have ALWAYS paid my own payroll taxes. I know how to do it, and I trust ME to do it. I do not need, nor want anyone else to do it for me. Here are my reasons why, and as a service to small businesses, I would sincerely hope someone at INTUIT can understand and reverse this horrible new policy.
ONE: My payroll taxes are due on the 15th of the following month that payroll is processed. I process payroll every other week (bi-weekly.) Your new policy means that if I run payroll on July 1st, you will withdraw and hold up to about $3000 from my account. Then I process payroll again on 7/15, you withdraw and hold another $3000 from my account. Then I process payroll again on 7/30. you withdraw and hold ANOTHER $3000 from my account. You are holding $9000 or more of my cash since (beginning) July 1, yet my taxes are not due until 8/15. Then, I process payroll again on 8/13, and you pull out ANOTHER $3000, which isn't due until 9/15! Can anyone at Intuit understand how bad this is for a small business. This could actually put me OUT of business. Small businesses simply do not have the cash on hand to afford this ridiculous new policy. Why would any small business want Intuit to hold $12,000 or more of their cash, instead of having it on hand to use for their own business needs? Of course, we all know why Intuit wants to do this: you will be earning $$$$$’s on our money, as you hold it until taxes are due. This may be no problem for a company with $5,000,000 plus in revenues/year but for most smaller businesses, this is just plain dumb.
Two: The IRS/EDD will hold me and my company responsible for paying our taxes. If, for some reason, Intuit fails to pay my taxes on time, or even fails to pay them at all, Intuit receives no penalty, MY COMPANY does. This is another reason why I want to control and pay my own company's taxes.
Three: Your agent said this decision was made in part, because you were getting NSF notices when you withdrew payroll funds and "holds" were being put on accounts. This is a head-shaker. Here's what Intuit is saying: "we keep getting insufficient funds notices from our small business customers, so why don't we withdraw and withhold MORE of the money (which they don't have) and hold it for weeks." That's brilliant, isn't it?
FOUR: Your agent said Intuit was just coming in-line with the full-payroll service industry, who all do it this way. Guess what? if I wanted ADP or Paychex to handle my payroll, I would hire them to do so! I don't want them, or any other company handling my taxes. I'm baffled at how no one at Intuit understands this or cares to actually try to meet their customer's needs. This policy actually makes running the business more difficult and stressful.
Please, for the love of GOD, reverse this policy and give me back the option to pay my own taxes. If people want what your new policy offers, they will opt in. Why not trust your own customers to make that decision themselves??