Multi-state Payroll Headaches: There’s a Better Way to Do This
If your business has offices or employees located in or working in multiple states, there’s the potential for complicated, time-consuming tax issues. Since multi-state companies must follow dual tax and payroll requirements—for federal and state levels—it can quickly become a sticky navigation. Complying with the federal laws and with the legislation set for each state your business or employees occupy makes having a synchronous payroll and tax calculation system vital.
When it comes to this merging of payroll and taxing across states, the challenge of integrating and managing the conflicting tax requirements is a big one. For instance, the withholding rules of some states might mandate employers to withhold personal income tax in each state an employee works. So if you have employees who travel between multiple office locations, you’ll be responsible for the taxes specific to each state that employee in working in.
If your company doesn’t have a dedicated, competent system in place to manage the potential complications of multi-state taxes, you run the risk of non-compliance. The challenge for most businesses with multiple locations is bandwidth and cohesion. This isn’t a task to be handled by a team manager. Nor is it a task that should be managed by a person with little experience in the intricacies of multi-state tax laws.
How a PEO can save the day (and save your assets)
The advantages to partnering with a professional employer organization (PEO) are many, but specific to this topic, a good PEO can take the multi-state tax busy work off your plate. PEOs will manage all aspects of payroll and taxes across the states, and they will know the rules and regulations for each state. You can then rest assured that you are operating in compliance to federal and state statutes, and that is an assurance that’s priceless. Without a trusted and competent system of management and organization in place, you run the risk of negative audits, distraction from your core duties, and loss of money.
Don’t risk the expensive and time-consuming issues that can come with ill-managed multi-state payroll and taxes. Talk to your PEO today about taking these details off your plate, and get back to the work you’re meant to do.
Don’t have a PEO, or not sure about how they work? Get in touch with PathGoal. One of our representatives will set up a no-obligation call to discuss how a PEO can help your multi-state business.