# Payroll service provider

> Payroll service provider — A firm that runs payroll under the employer's own EIN — paychecks, deposits, Forms 941, 940 and W-2. It isn't liable for the employer's employment taxes; the employer stays liable for every deposit it makes.

Source: https://lopifi.com/glossary/payroll-service-provider
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

---

**What is payroll service provider?** In accounting, payroll service provider means a firm that runs payroll under the employer's own EIN — paychecks, deposits, Forms 941, 940 and W-2. It isn't liable for the employer's employment taxes; the employer stays liable for every deposit it makes.

## Also known as

- PSP

## Words this system refuses for it

- PEO (co-employs)
- the employer

- **Category:** Payroll
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)