As of the date of this tax alert, Puerto Rico Department of Treasury (PRDOT) is sending out an alarming letter to all employers regarding the status of their electronic ACH Credit payments.
PUERTO RICO LETTER
The Puerto Rico letter is being sent out via email (and possibly via regular mail). The subject of the email is “Situation with your ACH Credit payment made to the Puerto Rico Department of Treasury” and is from email@example.com.
The letter states that your (the employer) transactions have been identified as non-compliant with the official specifications included in Publication 06-06, Automated Clearing House (ACH) Credit File Specifications.
It goes on to state that payments remitted in the incorrect format to the PRDOT may not be posted and will not be returned. Additionally, that initiating an incorrectly formatted payment may result in it being late and subject to the applicable payment penalty.
PAYLOCITY IS COMPLIANT
Paylocity is fully compliant with PRDOT Publication 06-06 and has been since December 2018 when it was enacted. We contacted the agency immediately upon receipt of this letter, and spoke directly with the SURI Department. We confirmed that all ACH Credit payments made by Paylocity on behalf of our Puerto Rico clients are compliant.
The letter is being sent to ALL Puerto Rico employers (even those employers who are not currently having payment issues) because the agency continues to receive payments made to the wrong bank account or incorrect addenda information and they want this behavior to stop.
VERIFYING PAYMENTS ON YOUR ACCOUNT
You can verify your payments online via the SURI website and use your assigned login information or contact them directly via email at firstname.lastname@example.org.
Thank you for choosing Paylocity as your payroll tax partner.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.