As they say, there are a few constants in life – death, lost computer data and filing taxes.
For an employer, it’s exciting to bring on new employees. But every April, as tax season arrives, business owners grudgingly buckle down and prepare to deal with unemployment and employee payroll taxes. It’s critical to ensure you meet all the requirements and stay within compliance.
The good news is that you won’t have to resort to late-night Googling to find the answers that will lead to optimal positioning where your employee payroll taxes are concerned. That’s what Integrity Employee Leasing does every day for our PEO clients! We cover everyone from single-site small businesses to large national franchise chains who employ fewer than 500 employees.
According to The Office of Advocacy, U. S. Small Business Administration, the average annual cost of regulation, paperwork and tax compliance for companies with fewer than 20 employees is $6,975 per individual. For those with more than 500 employees, this figure is roughly 60 percent higher.
Environmental regulations and the paperwork burdens of tax compliance disproportionately affect small businesses. Such regulation imposes about 40 percent of total business regulatory burden. Other regulatory burdens—those of workplace rules, and of constraints on pricing and the products firms can sell or buy (“economic” regulation)—are distributed more evenly.
It is one reason why many companies choose to deploy a knowledgeable, experienced PEO partner to handle complex employee payroll tax administration, accounting and bookkeeping.
Tackling Employee Payroll Taxes with a PEO Partner
According to the National Association of PEOs, the total employment represented by the PEO industry is roughly the same as the combined number of employees for Walmart (United States only), Amazon, Kroger, and Home Depot.
PEOs like Integrity Employee Leasing not only specialize in human resources management, but also excel in employee payroll tax filing, administration and compliance. In fact, Integrity employs an entire team of accounting, auditing and bookkeeping experts who provide peace of mind for business and franchise owners during tax season to include the following:
- Accounts Payable
- Accounts Receivable
- Account Reconciliation
- Monthly and Quarterly Financials
- Sales Tax Reporting
- Bookkeeping Systems
- Internal Controls & Compliance
“Our staff is dedicated to making your back office run smoothly, with over 120 years of accounting experience and consistent, proven bookkeeping practices. All services are tailored to your specific business and needs,” said Senior Manager of Financial Reporting Angela Garcia, who brings 40 years of experience to her leadership role at Integrity Employee Leasing.
When a client chooses to outsource these complex employee, tax, benefit and regulatory compliance areas, their PEO assumes all the obligations and administrative burdens, a strong incentive for small and mid-size companies. PEOs are structured and experienced at handling these requirements efficiently and accurately.
Traditionally, the PEO will assume primary responsibility for paying employee wages and withholding taxes. In addition, the PEO can administer benefits programs such as retirement plans, disability, accidental death and life insurance, as well as plan compliance with applicable federal and state laws. In this context, the Internal Revenue Service (IRS) considers the PEO to be liable for paying trust fund, income and unemployment taxes. The PEO also has the burden of proof – recordkeeping, documentation and explanation.
When you need to focus on building your business and crafting the perfect customer experience or product/service, it can be a relief to have a partner shoulder the employee payroll tax burden on your behalf. This frees your time and attention for critical business operations, innovation, profitability and online expansion. It also reduces the risk of penalty and interest charges, as well as sanctions for technical, administrative or regulatory mistakes.
It also saves resources and money. According to the Department of Labor, a PEO can handle its administrative responsibilities at one-third to two-thirds of the cost that an average business would incur to provide similar services. To cover the cost of partnering with a PEO, some clients find they can compensate by reducing their internal administrative staff requirements.
Ready to Find Tax Relief?
Could a proactive partnership with Integrity Employee Leasing streamline your employee payroll taxes, administration and compliance and save you time, money and stress? Get back to focusing what matters most – the growth and competitive positioning of your business in a tricky and ever-changing market environment. Call (941) 625-0623 to schedule a consultation.