Tax Processing Services Overview

The Lone Oak Payroll Tax Team takes on the task of filing and paying your businesses payroll taxes. Tax filing requirements are constantly changing and new taxes are being rolled out every year. Filing and paying taxes inaccurately or late can lead to large tax penalties - an extra expense no one needs. Not to mention, verifying the accuracy and compliance of tax filings is a burdensome task, usually requiring an in-house expert or consultant. Lone Oak Payroll can be that in-house expert. Our team takes on the burden of filing accurately, making payments, verifying compliance, and corresponding with states as needed. 

Services Provided

We'll complete the tax payments, returns, research, balancing, reconciliations, and maintenance for you.

Complete payments, returns, and reconciliations according to regulations. Including:

  • Payments based on state regulated due dates
  • Reconciliations annually
  • Weekly, monthly, quarterly filings and balancing

Balance allocation of tax withholding by jurisdiction via various daily, quarterly and annual processes

File amendments as needed (additional charges may apply)

Produce and file W2 data to local, state, and federal agencies annually

  Produce and file annual 1099 returns

Maintain POA (Power of Attorney) where required/applicable

Maintain Third Party or Bulk access to employer tax accounts*

Maintain employer specific rates for taxes such as unemployment**

Maintain employer ID and frequency, typically updated annually**

  Research and resolve tax letters from various agencies

Tax Types: What we cover and don't cover 

We've got federal, state, local, unemployment, and sales tax under control
Tax Types We Cover
Withholding - State and Federal
Unemployment - State and Federal
City Service Taxes and Fees
Occupational Privilege Tax
Paid Family Leave ***
Workers Compensation ***
Tax Levies***
Use or Sales tax when calculated on wages
Tax Types We Don't Cover
Hawaii Disability
Nevada Modified Business Tax
New York Disability
New York Metropolitan Commuter Transportation Mobility Tax
New York Paid Family Leave
Texas Franchise Tax
Washington Workers Comp (WA L&I)
Wyoming Workers Comp
Use or Sales tax when not calculated on wages
California Environmental Fee

Clients Automatically Enrolled in our Tax Processing Services

You'll notice Software Only clients are not automatically enrolled in this service, if that's you, you can always sign up by speaking with your Account Manager.
Payroll Processing
Software Only (Hosted)
Software Only (Self-Hosted)

Requirements to Utilize Tax Processing Service

 We'll do the 90% if you can help with the 10%.
Close week according to standard payroll deadlines
Note: Deadline is weekly, Thursday's at 11:00 AM. 

Establish a wire draw. 

  • Tax liabilities are collected weekly via your payroll wire, funding wire, or a stand alone tax liability wire
  • Tax liabilities are collected by 10:00 AM on Friday's (10:00am on Monday's for some holiday weeks)
Prior to payments or filings being completed, Lone Oak will require documentation by tax authority: 
  • Company ID (typically separate for Employer Withholding, Unemployment, and Locals by state)
  • Authority for Lone Oak Payroll to be the filing agent per jurisdiction
  • Payment frequency communicated by state collecting authority
Register for new accounts with taxation authorities as needed
Send new tax account information such as account ID, frequency, rate, etc., to the Tax Team (
Inform the Tax Team ( if you are no longer doing business in a jurisdiction and ensure those accounts are closed with taxation authorities
Send the Tax Team ( all notices such as tax rates updates, frequency changes, account status changes, filing/payment issues, etc.
Maintain all employee tax setup, worksite and employee addresses to ensure tax liabilities calculate correctly

*Employer assistance required for certain jurisdictions dependent on TPA/bulk access requirements

**Employers are responsible for making Tax Team aware of employer specific rate, frequency and account changes

***Some exceptions apply and are outlined in the Tax Types Not Covered by Lone Oak Payroll’s Tax Processing Services section below

Related Articles

  • None