Every company must be aware of the importance of payroll compliance, especially since it must adhere to federal, state, and local jurisdiction requirements. Not only is payroll compliance a complex and expensive sector, businesses frequently surrender thousands of dollars in legal fees due to compliance errors. These legal penalties can be due to not meeting wage and hour laws, ineligible workers, tax fraud/ discrepancies, and so on.
WHAT YOU NEED TO KNOW FOR 2020-2021
On the surface, payroll compliance divides into four categories:
Calculating and paying workers correctly (this includes overtime wages)
Withholding payroll taxes from wages in the correct amount
Filing payroll tax returns with the federal, state, and local government agencies
The timely depositing of corresponding tax liabilities
In addition, there are also FICA, FUTA, and Federal Income Tax Compliance laws that need to be accounted for when doing payroll compliance. If you are a business that operates in more than one state, then the payroll compliance system gets much more complicated. The complexity lies in the fact that you have to adhere to both state and local laws regarding payroll compliance. For example, some states follow the federal income tax code, others create their tax bracket, and a handful of states even charge no income tax. Regardless of how you view your industry, job position, or legal background, the payroll tax system is an enormously complicated feat and requires the utmost attention to avoid legal fees that may harm your business. It is important to note that while this is a general overview of payroll compliance, every state and even county may implement a set of different laws that will impact your business.
DON'T PANIC, WE CAN EASE THE HEADACHES
With so many business functions happening simultaneously, there is undeniable demand to have every HCM system running to perfection. There is additional stress in the chance of facing legal penalties that can affect your confidence in your organization’s management. At RJ Reliance, we fully understand the headaches that come with running a company. Our payroll consultants are experts in automating and integrating your systems to simplify your business and improve performance quality. We are also here to reassure you that outsourcing your design will enhance operation by saving your business time, money, and energy. In addition, our payroll consultants are experts in tax law and can ensure that your business will not mismanage any payroll compliance. If you are experiencing any of these pain points or seek to avoid them, contact RJ Reliance!