What if the PEO pays late or makes a mistake on the client company’s tax report?
A. The client company is ultimately responsible for all taxes due, including penalties and interest. However, if the PEO makes a mistake, files a late report or does not submit proper payment, the department will attempt to collect from the PEO first. Read the proposed rule (WAC 192-300-230) for details. Note: If neither the PEO nor the client company has paid all taxes due or made payment arrangements by September 30, that client company will receive the delinquent tax rate for the following year. Q.
