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County staff weigh changing 941 payment flow to simplify federal tax deposits
Summary
Clallam County finance, payroll and treasurer staff discussed changing how federal payroll tax payments are staged so the U.S. Treasury can withdraw directly from the county's primary checking account instead of relying on an inter-account transfer.
Clallam County finance, payroll and treasurer staff discussed changing how federal payroll tax payments (Form 941 and related federal withholding, Social Security and Medicare amounts) are staged and transferred so the U.S. Treasury draws directly from the county's primary account rather than moving funds between county accounts before the federal withdrawal.
Rebecca Turner (Finance) said the county has historically written a check from one county clearing account that is deposited by Loomis for federal pull via the Electronic Federal Tax Payment System (EFTPS). Last month a transfer failed to move funds in time, costing earning credits, Turner said; the committee discussed whether the federal payment could be scheduled to withdraw directly from the main account that holds benefits and deductions.
Payroll and auditor staff described current controls: payroll performs reconciliation and the auditor’s office cross-checks amounts before warrants or EFTs are approved. Jeanette Gore, chief deputy in the treasurer’s office, asked how reconciliation processes would change if payments came from the main checking account; payroll staff said reconciliation would continue and that the tax-account reconciliation is performed monthly.
Staff proposed operational next steps: the payroll, finance, treasurer and auditor teams will meet to map the process and confirm internal controls. The treasurer’s office said it will explore book-transfer options with U.S. Bank so the county can transfer a single amount to a clearing account or, alternatively, schedule federal pull from the primary account. Staff also said they will circulate a draft EFT policy for departmental review.
No formal policy change was approved at the meeting. Staff said they will convene a smaller working group to test process steps, simulate the workflow, and report back to the Finance Committee; committee members requested enough time to simulate new processes before implementation to avoid month-end problems.
