Why should you work with a PEO for payroll tax management?
Let’s shoot it straight: payroll and payroll tax management is of the most detailed-oriented, time-consuming, and annoying tasks for small-to-medium-sized business owners. Then you have to keep up with complex, ever-changing rules or face severe penalties for a mistake or omission.
Partnering with a Professional Employer Organization (PEO) allows you to streamline operations. This will reduce the time burden of payroll tax administration, and focus your efforts on core tasks that impact the bottom line. The right PEO will have the expertise to reduce errors, ensure compliance, and make the whole process less taxing.
Overview of PEO Payroll Taxes Management
A PEO acts as an extension of your business, handling most of your human resource functions. The PEO assumes the responsibility of managing your payroll administration and employment-related taxes using its own tax identification number (EIN), instead of yours.
Generally, the PEO handles payroll tasks, including processing payroll, paying wages, tracking paid time off, issuing employee W-2s, depositing payroll taxes, and more. The PEO agreement indicates which payroll tax withholding, payment, and reporting the PEO is responsible for on your behalf.
PEOs Make Payroll Tax Management Less Complicated
PEO payroll tax management services can eliminate your payroll hassles and ensure your business isn’t hit by any tax penalties. Here’s what a PEO can do for you:
Calculate Payroll Taxes
As part of their responsibilities, a PEO will calculate your company’s employment-related taxes. That means calculating federal, state, and local taxes for all your employees.
Process and File Taxes
When it comes to payroll tax processing and filing, you can count on a mountain of paperwork. From state and federally mandated items to time tracking. A PEO will handle the process for you, making sure you’ve documented all important information, submitted the correct forms, and met all deadlines. With a PEO, you won’t have to worry about miscalculations, missed deadlines, or tax penalties.
A PEO can manage your wage garnishment notices and payments. Your PEO can collect and review payroll information to ensure that wage garnishments, including child support, student loans, bankruptcy orders, state and federal tax levies, liens, and the like, are processed accurately and in compliance with withholding orders and laws.
Handle Employee Forms and Withholding Changes
A PEO will track employee status changes and prepare relevant forms for each employee. When it’s time to send out W-2s, W-4s, W-9s, and 1099s, the PEO will prepare and distribute them on your behalf, preventing errors and missed deadlines.
Every year, more than 33% of small businesses are fined for payroll mistakes. It’s easy for the complex US tax codes and the ever-changing payroll compliance rules to overwhelm your in-house payroll processes. Your PEO can help ensure your business keeps up with changing laws and regulations and that all relevant paperwork is filed.
Relying on a PEO Service for Payroll Processing
If you’ve been looking for ways to save time and cut operational costs in this turbulent economic environment, consider working with a PEO. A PEO will have a team of experts handling many areas of HR and payroll, including:
- Full payroll processing
- New-hire reporting
- Payroll setup
- Employee maintenance
- Keeping track of vacation, paid time off, and sick-leave accrual
- Automating payroll processing
- Time and attendance system integration
- Providing real-time access to the most up-to-date reports
- Deduction and benefits processing
- Direct deposit, pay cards, or wire processing
- Certified payroll
- Managing unemployment claims
Here are the benefits you’ll experience when you outsource your payroll functions to a PEO:
Save money: Relying on a PEO for payroll processing costs less than creating an in-house payroll department and investing in the necessary hardware and software.
Fewer payroll mistakes: A reputable PEO will ensure tax laws are followed and payments are made correctly, reducing the chances of making a mistake. Most PEOs provide tax guidance and take responsibility for penalties when they do occur. PEOs have staff dedicated to keeping up-to-date with rules, regulations, and changes in tax rates.
Data safety: A reliable PEO will store data on highly secure cloud-based servers with high-quality encryption technology and redundant data backups.
Access better technology: PEOs make sure they’re up-to-date when it comes to technology because they depend on it to provide the best services for their clients. Automating specific payroll processes can increase efficiency, cut down costs, and save time.
Save time: Outsourcing payroll and payroll tax management opens new time slots for you to fill out with tasks that could ultimately affect your bottom line. You can use that valuable time to improve workflow efficiencies, refine sales and marketing strategies.
Choose Vested HR for Top Tier Payroll and PEO Payroll Tax Management
At Vested HR, we realize that payroll and payroll tax management requires a lot of time, manpower, and expertise. We exist to take that administrative burden so you can focus on strategy and high-value tasks within your company. Our team will work with yours to execute payroll and HR tasks, putting your best interests at our forefront.
Let us help you take payroll frustration off your plate. Contact us today to schedule a consultation with one of our PEO experts.