Managing penalty & interest payments directly to tax agencies

Check can now pay penalty and interest (P&I) directly to tax agencies on an employer's behalf as part of how we resolve notices. When a notice comes in with a P&I balance and the agency is one we support, we can remit that payment straight to the agency rather than asking the employer to do it themselves.

This is a capability that we're rolling out for a growing set of agencies. It doesn't change anything else about how notices are handled, it's simply one more tool we use to resolve them, and in many cases it takes a step off the employer's plate.

Direct P&I remittance is available for a select group of high-volume agencies we've validated, including:

We're actively expanding this list. Because availability depends on each agency's own payment allowances, permission rules, and method often varies from how original payments are made, we're starting with the agencies where we can remit reliably and have confirmed initial payments are posting to the agency successfully, and adding more over time.

Direct remittance won't be possible for every agency, and that's largely driven by agency-specific requirements rather than Check's capability. Some agencies require payment methods or steps that make direct remittance impractical — for example, agencies that require a wet-signature authorization form on file.

In those cases, we'll continue to handle the notice the way we do today: Check will credit the employer for the P&I and provide guidance so the employer can make the payment directly.

For most supported agencies, no employer action is needed, especially when the balance is paid before the due date on the notice, where we are confident in the real-time balance due.

For some agencies, we may need lightweight employer participation to confirm the current balance (for example, approving access in the agency's portal). When that's the case, we'll let you know exactly what's needed.

How quickly the P&I goes out depends on who is responsible for funding it:

Either way, the employer doesn't need to navigate the agency's payment process themselves.

What if more interest accrues after you've paid the balance on the notice?

If a new notice comes in for a remaining balance, just send it to us and we'll pay it the same way. Alternatively, the employer can pay the small remaining balance directly to the agency, and if Check was at fault for the original mistake, let us know what they paid we can refund them directly. Check remains responsible for any P&I we owe.

Does this change how I report or handle notices?

No. Continue submitting notices exactly as you do today. Direct P&I remittance is part of our overall notice resolution process, there's no new step or tool for you to use.

Can you remit P&I for an agency that isn't on the supported list?

Sometimes. If you have a notice for an unsupported agency, send it in as usual and we'll evaluate it. We're continually expanding the agencies we support, and escalated cases help us prioritize what to add next.

Why can you remit for some agencies but not others?

It comes down to each agency's payment and permission requirements. Some agencies make direct remittance straightforward; others require steps we can't reliably complete on an employer's behalf. We're starting with the agencies we can support well and growing from there.