​
Payroll Funding Requirements

Failed funding will result in a penalty fee of $150 to remedy the payroll error with our payroll partner, Check.

In order to run payroll on Dripos, it is imperative to have the full cash requirement, or debit amount, settled in your connected payroll bank account at the time of payroll submission.

If Dripos’ banking partner attempts to withdraw the funds and funds are insufficient or the account is closed, the payroll will fail to fund.

  • Depending on your processing period, your employees may not get paid on time.
  • Your payroll account will be moved to an ‘in bad standing’ status.
  • Your account will be locked from running further payrolls until the payroll is funded and your account is back in good standing.
  • While your account is in bad standing, Dripos and its compliance partner is unable to remit or file taxes on the employer’s behalf.
  • The account will be charged a $150 failed funding fee, which is the cost to Dripos’ of remedying the failed funding with our banking partner.

If your payroll fails to fund:

❗Depending on your processing period, your employees may not get paid on time.

❗Your payroll account will be moved to an ‘in bad standing’ status.

❗Your account will be locked from running further payrolls until the payroll is funded and your account is back in good standing.

❗While your account is in bad standing, Dripos and its compliance partner is unable to remit or file taxes on the employer’s behalf.

❗The account will be charged a $150 failed funding fee, which is the cost to Dripos’ of remedying the failed funding with our banking partner.

❗If your account fails to fund payroll, you will be notified via email and your Dripos payroll dashboard will show a warning.

Reach out to payroll@dripos.com for assistance funding the payroll and getting your account back in good standing.

​
Payroll Tax Employer Requirements

Each quarter, Dripos and its compliance partner file taxes for Dripos payroll customers. The filing period closes one month after the close of the quarter.

Failure to properly provide Dripos and Check with company tax information and TPA access (if applicable) before the end of the fiscal quarter may result in a failed tax filing.

Starting after the close of Q2 2025, Dripos will be passing on the cost of re-filing failed taxes to the customer. This fee is $150 per failed filing.

​
Employer Requirements for Payroll Taxes

Each quarter, Dripos and its compliance partner file taxes for Dripos payroll customers. The filing period closes one month after the close of the quarter.

Payroll taxes can sometimes fail to file for reasons outside of Dripos’ control. **Starting after the close of Q2 2025, Dripos will be passing on the cost of re-filing failed taxes to the customer. This fee is $150 per failed filing. **

The following filing errors are eligible for failed filing fees:

Applied For EIN- This occurs if an employer has not provided Dripos with the tax account number necessary to file the pertinent tax.

  • All tax account numbers must be provided to Dripos 1 business week before quarter close at the latest to avoid a failed filing.
  • To input or check your tax account numbers, go to Finance > Payroll > Settings > Open Tax & Authorization Settings. All account numbers in Tax Setup must be inputted, not ‘applied for’ and all forms under Filing Authorization must be signed.

Failed TPA- This occurs if an employer has not granted Dripos and its partner the proper third party authorizations to file taxes on their behalf.

  • If Dripos cannot achieve TPA, you will be notified by your payroll implementation specialist when your account is ready to run payroll.
  • Please see here for instructions on how to grant TPA.

Taxes Already Filed- This occurs when a previous provider has already tried to file taxes on behalf of the employer, conflicting with Dripos’ tax filings.

  • Before the end of the quarter, please make sure that any previous payroll providers are canceled and told to not file any more taxes on the employer’s behalf.

If your payroll taxes have failed to file, you will receive a notice from payroll@dripos.com after the close of the filing period.

Failed tax filings may be the result of:

  • Incorrect or missing tax account information: The company failed to provide valid state/local tax IDs (e.g. missing EIN, SIT ID, SUI ID) OR tax accounts were never registered in certain jurisdictions
  • All tax account numbers must be provided to Dripos 1 business week before quarter close at the latest to avoid a failed filing.
  • To input or check your tax account numbers, go to Finance > Payroll > Settings > Open Tax & Authorization Settings. All account numbers in Tax Setup must be inputted, not ‘applied for’ and all forms under Filing Authorization must be signed.

  • Incorrect tax election setup: The company selected the wrong tax options or made incorrect PFML, SUI, or local tax elections.

  • No TPA access granted: Employer has not granted Dripos and its partner the proper third party authorizations to file taxes on their behalf.

Please see here for instructions on how to grant TPA access by state.

  • Taxes already filed: A previous provider has already tried to file taxes on behalf of the employer, conflicting with Dripos’ tax filings

Before the end of the quarter, please make sure that any previous payroll providers are canceled and told to not file any more taxes on the employer’s behalf.

⚠️ Consequences of a Failed Tax Filing

  • Penalties and Interest: Tax authorities may issue late filing penalties, failure-to-pay fines, and interest on unpaid taxes.

  • Delinquent Tax Notices: The company may receive warning or collection notices from federal, state, or local tax agencies. Repeated failures can lead to escalated enforcement actions.

  • Loss of Good Standing: The business could fall out of compliance and lose its “Good Standing” status with a state, impacting licenses or contracts.

  • Delayed or Missed Tax Payments: Failure to file may also delay the remittance of withheld taxes (e.g., income tax, unemployment tax), creating a liability balance.

  • Difficulty Filing Future Returns: Missed filings can complicate future filings—especially when backfiling is required or the provider doesn’t support it.

  • Potential Legal Action: In extreme cases, the government may pursue legal action or issue liens against the business for unpaid liabilities.

Please note that any agency penalty and interest for a late filing is the employer’s responsibility to pay, though Dripos can assist with remitting these funds.