Last Week In Florida Kimberly Daise
January 31, 2018

                                                                                        Outsource Your Payroll

By Kimberly Daise

When you outsource payroll to a PEO, it frees up your time to focus on the other responsibilities that come with running a business.

Correct Payroll Calculations

Payroll mistakes are the most common errors employers make. For example, classifying employees incorrectly, as exempt or non-exempt, creates an opportunity for further inaccuracies. Other payroll frequent errors occur include calculating overtime, holiday pay regulations, job costing, certified payrolls and handling payrolls with employees in multiple states.  Here are some examples:

  • You have not paid an “employee” correctly and may have missed overtime wages.
  • You have not recorded work time correctly.
  • You have not filed the correct federal and/or state tax forms.
  • You may not have made correct contributions to retirement plans.
  • You may not have given employees the appropriate benefits notices.
  • You may not have been paying appropriate workers’ comp premiums or calculated the premium under an incorrect rate code.

Error in payroll calculations may lead to violations by the Department of Labor investigations resulting in fines and penalties. Partnering with a PEO, can help keep you in compliance with wage and hour laws.

Tax Code Compliance

Business owners may not be aware of tax codes.  Payroll experts remain up-to-date on tax code changes and can easily correct errors.  A PEO handles tax reporting and filing on your behalf and even assumes the responsibility for accuracy.

Tax Management Services with a PEO typically include:

  • W-2 processing
  • 940 and 941 filings including federal withholding
  • W-3 processing
  • State withholding and unemployment
  • Local taxes
  • Unemployment claims

The penalties associated with wage and hour or tax violations add up quickly and put your business at risk for legal action.

 Savings and Bundled Services

Over time, outsourcing payroll could be more affordable than doing things yourself with a payroll software or hiring someone to coordinate payroll in-house, especially if other services are bundled with it.  In addition to payroll services, PEOs:

  • Workers’ compensation insurance
  • Guidance on HR best practices
  • Helps with compliance with employment laws
  • Offer your employees robust benefits package including health coverage and 401(k)

Manage and Grow Your Business

PEOs handle other payroll-associated tasks as well, like wage and judgement garnishments, which saves you time.

They help the processing of payrolls with all levels of complexity, which include:

  • Multi-state payrolls
  • Certified payrolls and Multiple pay rates
  • Allocations
  • Deductions
  • Per diems and non-taxable reimbursements

When you outsource the payroll or other HR administration, you’ll have more time to focus on managing and growing your business.

1 Comment

  1. Dominga says:

    This is really helpful, thanks.

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