Complex, numerous, and ever-changing --- payroll tax policies are already hard enough.
A new level of difficulty is added when payroll teams are forced to handle complicated payroll taxes across multiple states and jurisdictions.
We understand the challenges payroll teams face. And we are here to help you through them.
At Greenshades, we’ve dedicated our business to keeping pace with complicated payroll taxes so that you don’t have to. In this post, we give five of some of the more complicated aspects of payroll tax policy and explain how your business can successfully manage them.
- Managing Payroll Across Multiple Tax Jurisdictions
- Ensuring Compliance with Tax Jurisdictions and the Affordable Care Act
- Calculating Overtime, Garnishments, and Benefits
- Meeting a Myriad of Reporting Deadlines
- Keeping Accurate, Up-to-Date Employee Records
Mastering Complex Payroll Taxes
All businesses struggle with payroll taxes. If a payroll platform isn’t flexible enough to deal with the growing complicated payroll taxes of today’s business world, manual workarounds may become necessary. This leaves the door open to such problems as:
- Fines and Penalties
1. Managing Payroll Across Multiple Tax Jurisdictions
If you have employees that are geographically dispersed, you might use spreadsheets to calculate taxes and track reporting deadlines for each jurisdiction.
Manual spreadsheets are increasingly an inefficient and inaccurate way to manage complicated payroll taxes.
The Challenge: More States, More Problems - The more areas your employees work across, the more problems your payroll team will face.
- Keeping track of and meeting multiple deadlines
- An increased potential for human error
- Being buried in non-productive administrative tasks
The Greenshades Payroll & HR Platform Advantage - Our solution automatically updates, selects, calculates, and deducts employee and employer payroll taxes based on an employee’s filing status and location. Our solution also automatically manages tax calculations to account for reciprocity agreements making it easier to stay compliant.
2. Ensuring Compliance with Tax Jurisdictions and the Affordable Care Act
Compliance is a moving target.
Greenshades simplifies and streamlines the process of managing complicated payroll taxes by complying with requirements across tax jurisdictions and federal regulations that change every year.
The Challenge: Automating Tax Rates - Ensuring federal, state, and local tax rates are kept up-to-date and accurate is enough work. But it gets even more complicated when your payroll team also needs to submit tax returns to multiple states through various websites, logins, and workflows.
The Greenshades Payroll & HR Platform Advantage - For each employee, tax rates are automatically updated for you and electronic tax returns are generated and submitted based on
that jurisdiction’s formatting and reporting requirements. All tax deadlines are automatically calculated so nothing gets missed.
3. Calculating Overtime, Garnishments, and Benefits
Add-ons to an employee’s payroll taxes such as child support, garnishments, or tip credits can complicate things even more for payroll teams.
The Challenge: Minimum Wage - It’s a natural challenge for payroll teams to keep track of which employees require what wage when minimum wage rates vary across state lines. Tips make the process even more complicated.
The Greenshades Payroll & HR Platform Advantage - We ensure employees are not underpaid by automatically applying a minimum wage credit to any employee falling below minimum wage levels. This includes tipped employees with tip credits.
4. Meeting a Myriad of Reporting Deadlines
The rollover of the new year can be the most stressful and chaotic time for payroll staff. Bottlenecks are created when employees are forced to process mountains of W-2s and ensure each document gets to the right person on time.
The Challenge: Eliminating Manual Reconciliations - Manually reconciling W-2 and 941 totals during year-end is a tiring process.
The Greenshades Payroll & HR Platform Advantage - Our solution makes the process easier as federal 941 returns are generated and reported to the IRS each quarter. They are then automatically reconciled with W-2 forms at year-end before reporting to tax agencies.
5. Keeping Accurate, Up-to-Date Employee Records
If your payroll team is keeping track of employee information and records in spreadsheets, you could see costly mistakes and inaccuracies that drain both productivity and employee confidence.
More importantly, this insecure way to handle sensitive information puts your company and employees at risk of breaches and fraud.
The Challenge: Being Compliant from the Start - It’s critical to ensure all employee tax withholding documentation is collected and properly applied within your payroll solution. Manual, paper-based processes involved with new hires set the stage for either smooth-sailing or rough waters come tax season.
The Greenshades Payroll & HR Platform Advantage - Using a simple online wizard, you can automate the onboarding process. All paperwork by new employees is ensured to be filled out on time and your organization will stay compliant with internal and external mandates.
Simplify and Increase Efficiency
Complicated payroll tax policies are numerous and tend to change on a regular basis.
- Are you currently manually updating employee and employer payroll taxes?
- Is it a challenge for your payroll team to build compliant electronic tax returns?
- Do you have hourly workers for whom you need to manually calculate overtime?
- Does your payroll staff experience stress and bottlenecks at year-end?
- Do you find your team needs to backtrack on paperwork to ensure accuracy and consistency?
If you have answered yes to any of the questions above, it’s time to find out how the Greenshades Payroll & HR Platform could be your ticket out of your complicated payroll tax challenges.
Would you like to learn how to have a more flexible solution that meets your payroll needs? View our eBook “
By Greenshades Software,