Berkheimer tax administration services have become a go-to solution for businesses and individuals struggling with complex tax compliance, payroll processing, and municipal tax obligations. If you’re tired of drowning in tax paperwork or worried about missing critical deadlines, understanding what Berkheimer offers—and whether it’s the right fit for your situation—could save you thousands in penalties and headaches.
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What Is Berkheimer Tax Administration?
Berkheimer Tax Administration is a Pennsylvania-based tax services firm that specializes in handling payroll tax compliance, municipal tax administration, and employer tax obligations. Think of them as the middleman between your business and the IRS, state revenue departments, and local tax authorities. They’ve been around since 1988, which means they’ve weathered multiple tax code changes and economic cycles.
The company operates in multiple states, though their roots are deepest in Pennsylvania and surrounding Mid-Atlantic regions. They handle everything from quarterly tax deposits to annual reconciliations, reducing the burden on business owners who’d rather focus on running their operations than deciphering tax codes.
What sets Berkheimer apart is their focus on payroll tax administration services and municipal tax management—not general accounting or bookkeeping. This specialization means they’ve built deep expertise in one area rather than offering a surface-level “do everything” approach.
Services Offered by Berkheimer
Berkheimer’s service menu is fairly focused, which is both a strength and a limitation. Here’s what they typically handle:
- Payroll tax compliance: Calculating, filing, and depositing federal and state payroll taxes on behalf of employers.
- Municipal tax administration: Managing local business taxes, wage taxes, and earned income taxes across multiple jurisdictions.
- Tax return preparation: Filing quarterly and annual payroll tax returns with appropriate agencies.
- Penalty abatement assistance: Helping businesses resolve tax issues with government agencies.
- Audit support: Representing clients during tax audits and responding to government inquiries.
- Multi-state compliance: Managing tax obligations when your business operates across state lines.
If you need help with income tax strategy, business entity selection, or working with a chartered tax advisor for advanced planning, Berkheimer isn’t your first stop. They’re tactical executors, not strategic planners.
Payroll Tax Processing & Compliance
This is Berkheimer’s bread and butter. Payroll tax compliance is tedious, error-prone, and carries serious penalties when done wrong. The IRS doesn’t care if you were “too busy”—late deposits and incorrect filings result in penalties that compound quickly.
Berkheimer handles the mechanical work: calculating federal income tax withholdings, Social Security, Medicare, unemployment insurance, and state-specific taxes. They coordinate with your payroll processor (or integrate with their own systems) to ensure amounts withheld match what gets filed and deposited.
The real value here is peace of mind. You’re outsourcing a task that requires precision, attention to detail, and staying current with changing tax rates and thresholds. For small to mid-sized businesses, this frees up internal resources and reduces the risk of costly errors.
However, Berkheimer won’t tell you whether your business should be classified as an S-Corp, LLC, or sole proprietorship for tax purposes—that’s outside their scope. You’d need to consult a tax professional experienced with entity structure decisions for that conversation.
Municipal Tax Solutions
Many business owners overlook municipal taxes until they receive a notice of non-compliance or a bill for back taxes. Berkheimer specializes in helping businesses navigate this fragmented landscape.
Municipal tax obligations vary wildly by location. A business in Philadelphia faces different wage tax rules than one in Pittsburgh. If you operate across multiple municipalities, tracking filing deadlines, rate changes, and reporting requirements becomes a nightmare fast.
Berkheimer maintains databases of municipal tax requirements across their service areas and manages filings automatically. They also monitor for changes in local tax rates and adjust withholdings accordingly. This is especially valuable if you have remote employees or multiple office locations.
One caveat: their municipal tax expertise is strongest in Pennsylvania and the Mid-Atlantic. If your business is primarily in other regions, their value proposition weakens.
Pricing & Cost Structure
Berkheimer doesn’t publish a transparent price list on their website, which is frustrating but typical for tax service firms. Pricing usually depends on:
- Number of employees: More employees = more payroll tax complexity and higher fees.
- Number of states/municipalities: Multi-state compliance costs more than single-state operations.
- Service scope: Basic payroll tax filing costs less than comprehensive audit support and penalty abatement.
- Frequency of transactions: Weekly payroll requires more processing than monthly or semi-monthly.
Based on industry standards, expect to pay anywhere from $500 to $3,000+ annually for small businesses, scaling up for larger operations. Some firms charge per payroll cycle, others charge flat monthly fees.
To get an accurate quote, you’ll need to contact them directly with specifics about your business structure, employee count, and geographic footprint. Ask about setup fees, whether there are penalties for early termination, and if they offer any volume discounts.
Compare this against payroll tax alternatives and industry benchmarks before committing. Sometimes a full-service payroll provider like ADP or Guidepoint includes tax filing in their base package, making them more cost-effective than using a standalone tax administrator.
Pros and Cons
Pros:
- Deep expertise: They focus exclusively on tax administration, not general accounting. You’re getting specialists.
- Established track record: 35+ years in business means they’ve handled recessions, tax law changes, and economic uncertainty.
- Penalty relief: Their experience with tax agencies can help resolve compliance issues faster.
- Multi-jurisdictional support: If you operate across multiple states and municipalities, their systems handle this complexity.
- Local presence: Being Pennsylvania-based means they understand regional tax nuances that national firms might miss.
Cons:
- Limited geographic reach: Their expertise and service quality are strongest in the Mid-Atlantic. Expanding nationally may dilute service quality.
- No strategic tax planning: They won’t help you reduce your overall tax burden through entity structure changes or deduction optimization.
- Not a full-service firm: If you need accounting, bookkeeping, or audit services, you’ll need to hire someone else.
- Opaque pricing: No published rates make it hard to budget or compare against competitors.
- Customer service variable: Like most tax firms, responsiveness can depend on the season and your assigned account manager.
Competitors & Alternatives
You’re not limited to Berkheimer. Depending on your needs and location, consider:
- ADP or Guidepoint: Full-service payroll providers that include tax filing. Better if you need integrated payroll processing and tax compliance.
- Local CPA firms: Often provide tax administration services with added strategic planning. Usually more expensive but offer broader value.
- Regional tax service firms: Similar to Berkheimer but may have stronger presence in your specific state or region.
- Online payroll platforms: Platforms like Rippling or OnPay include basic tax filing. Suitable for very small businesses with simple needs.
The best choice depends on your business size, complexity, and whether you need services beyond tax administration. A 50-person company operating in three states has different needs than a 5-person LLC in a single location.
Real-World Use Cases
Scenario 1: Growing e-commerce business
You’re a founder running a successful online store with 15 employees spread across four states. You’re handling payroll in-house, but tax compliance is eating up 8-10 hours per week. You’re worried about missing deadlines and state-specific requirements. Berkheimer could consolidate your multi-state tax obligations and free up your time. Cost is probably $1,500-$2,500 annually, a small price for peace of mind and reclaimed time.
Scenario 2: Service business with high employee turnover
You own a cleaning service with 30+ employees and high turnover. Tracking tax withholdings, new-hire reporting, and unemployment insurance is complex. Berkheimer’s systems would reduce errors and ensure compliance even as your workforce changes constantly.
Scenario 3: Startup trying to keep costs low
You’re a three-person startup in year one. You’re profitable but cash-conscious. Hiring Berkheimer might be overkill—a basic payroll platform like Guidepoint or even Excel spreadsheets (with careful manual filing) might suffice. Revisit this decision once you hit 10+ employees or expand to multiple states.
Setup & Implementation Process
Getting started with Berkheimer typically involves:
- Initial consultation: You’ll speak with an account manager about your business structure, employee count, and current tax situation.
- Information gathering: They’ll collect details about your payroll processor, current filing status, and any outstanding tax issues.
- System setup: They’ll integrate with your payroll system (or set up their own) and establish accounts with relevant tax authorities.
- Transition period: There’s usually a handoff period where they take over from your previous provider or internal process.
- Ongoing management: Monthly or quarterly check-ins to ensure everything is running smoothly.
The timeline is typically 2-4 weeks from initial contact to full implementation. If you have outstanding tax issues or need penalty abatement, resolution could take longer.
Before signing up, ask about their onboarding process, what documents you need to provide, and their communication protocols. You want to know how you’ll get support if something goes wrong mid-quarter.
Frequently Asked Questions
Is Berkheimer Tax Administration a scam?
No. Berkheimer is a legitimate, established tax services firm with a 35+ year track record. They’re regulated by state authorities and have no significant complaints with the Better Business Bureau. That said, they’re not right for every business—make sure their services align with your actual needs before signing up.
Do they handle federal income tax returns?
Berkheimer primarily handles payroll tax administration and compliance—the taxes you withhold and deposit on behalf of employees. They typically don’t prepare individual 1040s or business income tax returns. For those, you’ll need a CPA or tax preparer.
What happens if I have a tax audit?
Berkheimer offers audit support and representation, depending on your service level. They can respond to government inquiries on your behalf and help resolve compliance issues. However, if the audit involves income tax matters beyond payroll, you may need additional support from a CPA.
Can they help with estimated tax payments?
That depends on the type of estimated taxes. If you’re a business owner with self-employment income, you’d want to consult a CPA about estimated tax payment strategies. Berkheimer handles employer payroll tax deposits, which are different.
How do I know if I need Berkheimer?
You’re a good fit if: (1) you have employees, (2) you operate in multiple states or municipalities, (3) tax compliance is eating up your time, or (4) you’ve had previous tax compliance issues. You probably don’t need them if you’re a solo freelancer, use a full-service payroll provider that includes tax filing, or have a CPA already handling all tax matters.
What if I’m located outside Pennsylvania?
Berkheimer operates in multiple states, but their expertise and service quality are strongest in the Mid-Atlantic region. If you’re on the West Coast or in the South, a regional firm with stronger local presence might serve you better. Contact them to confirm they service your state before assuming they can help.
Can they reduce my tax bill?
No. Berkheimer ensures you pay what you legally owe—no more, no less. They don’t provide tax strategy advice or identify deductions you might be missing. For tax reduction strategies, you need a CPA or tax strategist, not a tax administrator.
Final Thoughts on Berkheimer Tax Administration
Berkheimer Tax Administration fills a specific niche: they’re excellent at handling the mechanical, compliance-heavy aspects of payroll and municipal tax administration. If that’s your pain point, they’re worth considering.
However, they’re not a complete tax solution. You’ll still need a CPA or tax advisor for strategic planning, entity structure decisions, and income tax optimization. Think of Berkheimer as the executor of your tax strategy, not the architect.
Before committing, get a detailed quote, understand their service scope, and confirm they operate in all your business locations. Compare their pricing against integrated payroll platforms and local CPA firms. The right choice depends on your specific situation—there’s no one-size-fits-all answer.
If you’re drowning in tax compliance work and need to reclaim your time, Berkheimer is worth a conversation. Just go in with clear expectations about what they will and won’t do for your business.
