US payroll company owes $27m in unpaid payroll taxes, according to IRS

An IRS tax liens shows that the situation goes back as far as 2012.

A US payroll company providing services to more than 400 Florida businesses reportedly owes the Internal Revenue Service (IRS) nearly US$27 million in unpaid employment and payroll taxes.

According to local online news publication, the situation at Payroll Management Inc (PMI) started in 2012, when an IRS tax liens reveals that it failed to pay US2.3 million on behalf of its customers for the autumn quarter of that year.

PMI, which is based in Fort Walton Beach, Florida, is a professional employer organisation (PEO) whose role it is to look after employee management tasks for clients such as handling payroll, benefits and training and development. Customers pay the PEO, which in turn pays employee payroll withholdings such as income tax and social security to the relevant authorities.

But the IRS claims that PMI failed to pay some of the money owing to the government. The company responded by issuing a statement saying that: “PMI is in compliance with all current tax obligations. We want to reassure our clients that we are fully cooperating with the IRS to address past tax issues.”

It continued that it had “entered into a transaction with a large, national PEO, pending IRS approval” that would resolve the tax liens situation, but was still “fully operational”.