3 Common payroll challenges
There are several ways for small business to generate payroll. And a few more to manage human resources. That may lead to an overlap of – or worse – missed obligations. What I see derailing smooth payroll and human resources are most often are:
The Unknown
- There are many entities dictating employers including:
- The Dept. of Labor, IRS, NY State Taxation & Finance and Workers’ Compensation board. Businesses can find themselves falling down a rabbit hole to finding which rules apply to them.
Regulations may seem elusive and missing one can be costly.
Excessive paperwork requirements
- Once a company hires just one person it is forced to complete & file over 92 (ninety-two) forms/checks in a year. In addition to just the payroll checks, this includes:
- Employee applications, new hire reporting, tax withholding forms, Form I-9 and banking information. Additionally, benefit enrollment and/or decline – including the SECURE Act.
- Employer Federal and state income tax payments, FICA and Unemployment payments, NYS disability and Workers’ Comp reporting.
Inability to collect, retain and retrieve these can incur penalties.
Low priority vs business building functions
- Smart, successful businesses spend time and resources gaining new or service existing customers, not tasks that can be outsourced.
- Revenue producing activities like networking, vendor relations, customer interaction, operational improvements, and marketing efforts are good for the bottom line.
- While non-core tasks like tax reporting, employee administration, benefit management, and insurance obligations are a drain on profits.
Time is limited – small business cannot afford to waste it.
Meet the Challenge
I think small business owners appreciate a system that solves all three of these problems. Of course, I suggest a Professional Employer Organization (PEO). As the name implies, they are in the profession of employing.
Whereas a landscaper got into business to design & build functional and pleasing landscape, and a Restaurateur opened to create delicious and comforting food, A PEO went into business to be an employer.
Your local PEO, Employ-Ease, becomes co-employers to our client’s staff. In the eyes of Federal and State regulators we are liable for all the payroll and human resource obligations.
- So no more confusion over The Unknown – we are in compliance with Dept. of Labor, IRS, NY State Taxation & Finance and Workers’ Compensation board.
- No more wasted time on Excessive paperwork requirements – we are responsible for applications, new hire reporting, tax withholding form, Form I-9, benefit enrollment.
- And less frustration on Low priority vs business building functions – we handle tax reporting, employee administration, benefit management, and insurance obligations.
