Payroll compliance means adhering to all local, state, and federal regulations governing and safeguarding employee payment. Payroll compliance is a necessary component of HR operations because otherwise, businesses can have penalties that can affect the bottom line. Or worse, put it out of business entirely.
As the company grows, it will have to meet certain regulations and critical deliverables, which means different fillings each year—some of which can be monotonous or lengthy. Outsourcing repetitive but data-sensitive tasks can positively impact your entire business strategy or help you use your resources and budget better.
The right payroll compliance services provider will handle registration and compliance to free up your valuable time and resources so that you can concentrate on your business.
GO Admin is a leading payroll service provider serving businesses in Nevada. As a reliable payroll expert company, we help you ensure compliance with your company’s payroll and tax. Contact us to learn more about or request payroll compliance services in Southwest Arizona, NV.
Payroll Tax Compliance
What is payroll tax compliance?
Payroll tax compliance is withholding taxes from employee paychecks and submitting these taxes to the US government on behalf of employees. Payroll tax compliance must follow strict guidelines to guarantee consistent taxes across the involved parties: government, employer, and employee.
Payroll tax compliance works differently for each of these groups:
Employers: An employer must follow federal, state, and local payroll tax guidelines to ensure timely collection of employee taxes. An employer must report tax withholding to the IRS each quarter.
Employees: State, federal, and local payroll taxes are withheld from employees’ paychecks. The taxes comprise income taxes, Medicare taxes, social security taxes, and various local and state taxes.
Government: The IRS mandates businesses with employees to withhold federal payroll taxes.
Have you filed your payroll taxes and payroll tax forms on time? Avoid the stress of large tax penalties by outsourcing your payroll services to a payroll tax compliance expert. However, ensure you get a payroll tax compliance expert conversant in different tax compliances, including:
The Federal Insurance Contributions Act (FICA) compliance is based on a US federal payroll tax calculated on a wage percentage. It funds Medicare and Social security and is typically paid for by employees and employers, each paying 7.65% of the 15.3% requirement.
The Federal Unemployment Tax Return (FUTA) caters to federal government employee insurance. Each employer must pay the FUTA tax quarterly and file them on Form 940 yearly.
Federal Income Tax Compliance
The US has different federal income tax brackets for varying income levels. As an employer, you should use these brackets to withhold income tax from employee wages. Income gets taxed at higher rates when taxable income increases since national income tax rates are progressive.
The Fair Labor Standards Act (FLSA) establishes youth employment standards, record keeping, overtime pay, and minimum wage, affecting employees of the local, state, and federal government and the private sector.
At GO Admin Solutions, we often see these types of non-compliance mistakes:
- Exempt / Non-Exempt & Salaried / Hourly classifications of employee pay
- Pre-tax vs. taxable benefits
- Mileage & Other Reimbursements
Compliance with the above helps avoid the often-harsh consequences of non-compliance.
The Cost of Non-Compliance
Besides the damage non-compliance can cause to your business’s reputation, you can also be subject to:
- Monetary Fines/ Penalties
- Criminal penalties
- Ceasing business operation. I could shut your business down in extreme cases. (However, these most commonly come from having unsafe working conditions).
- A warning.
We assist you in fulfilling your legal payroll and employment tax duties everywhere you operate. With our guidance on the latest employment-related best practices, any payroll and tax issue can be identified, mitigated, and resolved.
How to Avoid Payroll Compliance Mistakes
Below are steps your organization can take to reduce your non-compliance risks:
- Establish new policies or procedures. You may want to review policies and procedures, such as hiring practices and other regular business tasks and transactions.
- Conduct an internal audit.
- Hire a payroll compliance review expert. A competent third-party payroll compliance service provider extends your team’s abilities. They understand regulatory and legislative guidelines that affect your business. A payroll compliance expert such as GO Admin can help you ensure compliance with payroll and tax guidelines.
Learn More About Our Payroll Compliance Services Today
GO Admin provides reliable and effective payroll compliance services to businesses, avoiding the risks of non-compliance. GO Admin helps businesses manage their Human Resources, accounting, and finance functions. Contact us to schedule a consultation with our payroll reporting compliance review experts.