As congress debates the taxing structure for next year, payroll companies are getting worried. Jim Medlock, with the American Payroll Association says congress needs to resolve the fiscal cliff discussion soon.
Tax preparers might have to go back to the 2001 income tax rates, a table that has a lot of moving parts.
Medlock says every individual in the United States who is working will be impacted by the decision, and payroll companies do a lot of the work to make sure that their clients are properly taxed, and paid, something that the seeming deadlock in Washington will hamper after Dec. 14.
Medlock says if the payroll companies don‘t get any guidance from congress by mid-December, payroll mistakes, and revisions could cause setbacks as preparers scramble to plug in new data.