Understanding what an employer or fiscal agent is under IRC Section 3504 can help your company better understand the handling of payroll and related payroll taxes. In this case, an employer or fiscal agent under the law is an agent or person who has the ability to control the wages of an employee or a group of employees. He or she is employed by one or more employers.
Under the designation, the employer has the authority to designate the agent the ability to pay wages and also handle all related payroll tax withholding activities. Any and all the provisions of law that exist, including any penalties, will be applicable back to the employer to whom the fiscal agent is working as. The employer is still liable for any acts that occur as a result of the activity. Reporting, as well as paying, federal employment taxes are all in the scope of the fiscal agent.