Did you know that the IRS audits approximately 25% of small businesses for their payroll tax compliance? If the thought of being audited by the IRS makes you nervous, you're not alone.
With numerous deadlines, forms, and compliance regulations to navigate, it's no surprise that 33% of small- to mid-sized business owners say that they are uncomfortable completing payroll and navigating taxes on their own.
Plus, regularly updating employee classifications, adhering to multistate regulations, and distributing W-2s and other tax reporting documents can lead to costly mistakes and a stressful tax season.
PEO services managed by an experienced payroll, tax, and HR compliance team is a great solution for companies of all sizes.
Here's how partnering a PEO can help take the stress out of tax season and a lot more:
Process and file taxes
Payroll and Tax teams will manage the filing of federal employee income taxes, state withholdings, forms 940 and 941, unemployment taxes, and more. Even the slightest error or delay in these filings can result in fines or penalties, which is why it's helpful to have professionals assisting you with this process.
They can also help with statutory payroll tax deductions, such as social security and medicare taxes, and voluntary payroll deductions, like health insurance premiums and retirement plan contributions.
Simple employee document distribution
Your PEO Payroll team will prepare W-2s and W-3s, along with other key tax documents, for your employees. Online employee self-service tools (via an HRIS) can also simplify distribution by providing employees access to their tax documents, along with pay stubs and accrued paid time off, and benefits information.
Manage multistate regulations
Businesses that operate across multiple states, whether through additional locations or remote employees, face increased challenges during tax season. Each state comes with a unique set of tax regulations, and business owners are required to adhere to all of them. Engage can help you meet these requirements and keep you current on potential tax code changes.
Handle employee changes
Integrated technology solutions also enable managers and employees to update key information in real-time (e.g., update employee location, compensation, marital status, number of dependents). This further helps ensure that critical data stays up-to-date.
Help you focus on your business
The last thing you want as a business owner is to be caught up with complicated tax preparations and filings. By partnering with an experienced PEO, employers can focus on growing their business, improving efficiencies, and managing their people.
Ready to take the stress out of taxes and future tax filings for your business? Get in touch with Engage PEO’s team of payroll and tax professionals today and learn more about our turn-key HR solutions for business.