IRSAC Outlines Common Pay Agent, FICA Exemption Recommendations

The Internal Revenue Service Advisory Council’s recommendations to IRS include a focus on common pay agent reporting and foreign student FICA exemptions, an IRSAC member said March 21.

Common Pay Agents

Common pay agents and Certified Professional Employer Organizations are agents appointed by employers to file employer tax returns and deposit taxes to the government.

Employers often use a common pay agent or CPEO if they are paying wages under multiple legal entities or subsidiaries, said Martin Armstrong, an IRSAC member and vice president of payroll shared services for Charter Communications. Armstrong is also a member of Bloomberg Tax’s Payroll ...