Farmers using payroll services through Salsa and FarmRaise will need to complete IRS Form 8655, the "Reporting Agent Authorization." This form is essential as it allows a third party, such as a payroll service provider, to handle tax filings, tax deposits, and communicate with the IRS on behalf of the farmer. Here's an overview of why completing this authorization form is crucial and how it works.
What is IRS Form 8655?
IRS Form 8655 is an authorization form that enables a reporting agent, like a payroll service, to:
File returns, including payroll tax forms such as Form W-2.
Make payroll tax deposits and payments through the Electronic Federal Tax Payment System (EFTPS).
Access tax information and communicate directly with the IRS regarding tax filings and other payroll tax matters.
This form is vital for simplifying payroll tax compliance for farmers, as it grants the reporting agent the ability to handle key tax responsibilities. By authorizing a third party, farmers do not have to worry about managing payroll tax filing, making tax deposits, or meeting tax deadlines.
Why Do Farmers Need an 8655 Form for Salsa and FarmRaise Payroll Services?
When farmers choose FarmRaise in partnership with Salsa for payroll, they need to complete IRS Form 8655 to authorize Salsa to handle tax filing and deposits on their behalf. By filing this form, farmers grant Salsa the authority to:
File Payroll Taxes: Salsa can file tax returns, such as Form W-2, and other necessary tax forms on behalf of the farmer.
Make Tax Payments: Salsa will manage tax deposits, ensuring timely payments through the IRS's electronic filing system.
IRS Communication: Salsa becomes the primary contact person with the IRS, receiving tax information, responding to requests, and addressing any issues that arise related to the employer’s payroll taxes.
Without this authorization agreement, Salsa would not be able to act on behalf of the farmer regarding payroll tax matters. The identification number provided on the form, like the Employer Identification Number (EIN) or Social Security Number (SSN), ensures proper tracking and reporting with the IRS.
How Do Farmers Complete Form 8655?
To complete Form 8655, farmers need to fill out the following sections:
Taxpayer Information: This section requires the farmer's company name, address, and taxpayer identification number (TIN), which could be either an Employer Identification Number (EIN) or Social Security Number (SSN).
Reporting Agent Information: This includes the name, address, and identification number (EIN) of the reporting agent (Salsa).
Authorization Agreement Details: This section lists the specific tax forms that the agent is authorized to file and the types of tax payments they can make.
Farmers will submit this form during the payroll onboarding process. Once this form is completed, farmers can rest assured that their payroll tax filings and payments are in good hands.
Why is IRS Form 8655 Important?
Filing IRS Form 8655 is critical for farmers using payroll services like Salsa and FarmRaise. It ensures compliance with IRS regulations and gives Salsa the authority to file returns, make tax deposits, and access tax information. This form also allows the reporting agent to handle duplicate copies of tax information and disclosure agreements with the IRS.
Without Form 8655, Salsa cannot file returns or manage tax payments for the farmer. This could result in penalties for late payments or errors in tax filings. The form provides peace of mind by ensuring that payroll tax obligations are handled accurately and on time, thus helping to avoid penalty relief determinations and other IRS complications.
In summary, IRS Form 8655 serves as a power of attorney for payroll tax matters, allowing Salsa to file tax forms, manage payments, and communicate directly with the IRS on the farmer's behalf. It's an essential step for any farmer using payroll services in the USA to ensure smooth and compliant payroll tax filing.