Affordable Payroll & Tax Solutions for Small Businesses
Streamlined and Accurate Payroll Solutions Made Easy
Payroll tax errors can wreck havoc on a business. By shifting the legal liability for all tax related issues to the Employer on Record, i.e. the PEO Company, the client company has created a shield. The burden to dispute an audit related question becomes the responsibility of the PEO company.
The PEO Company files all Payroll Taxes, including IRS Quarterly 941 filings, State & Federal Unemployment Reports, W2, W3, and other reports under its own Tax Identification Number. It assumes responsibility and liability for payment of wages, compliance with rules and regulations governing the reporting and payment of all taxes due to the Co-Employment agreement.
Most PEOs are licensed in multiple states. This allows a client company to have employees in different states, and avoid having to register to file and pay employment taxes in those states. Oil & gas contractors, who hire from out of state, and dispatch employees to a third state find this of particular value, since most contracts are temporary in nature and employees are frequently re-assigned to different states.
PEOs process between 10,000 and 20,000 payrolls per week. Their processing infrastructure allows flexible solutions to meet the most complex of multi-state payroll and reporting requirements of the client company. This includes direct deposit, debit card accounts, 401K retirement with holdings, payroll tax deposits and payments, W-2, 1099, garnishments, wage levy, ACA 1094 and 1095 reporting. Additionally, they can provide payroll reports for Job & Department costing purposes.
Summary of Payroll Tax Services Offered
Failure to pay Payroll Taxes in a timely manner is one of the biggest audit triggers for the IRS.
Payroll services company will file taxes under the client company’s FEIN. In the event of an audit, it is the client company under audit, not the payroll service company.
In contrast, a PEO files payroll taxes under their own FEIN. Payroll and tax liability lies with the PEO as they are the employer on record.
Services offered by a PEO:
- Complete payroll and tax processing
- I-9 Employment Verification
- Benefits accruals
- Background Verification
- Certified Payroll
- Benefits and Deductions Processing
- Flexible Job Costing Reports
- Uniform, Tools, Per Diem Reimbursements
- Federal & Local Tax Withholdings & Deposits
- Child Withholdings & Wage Garnishments
- Workers Compensation Premium deposited
- 24/7 Employer / Employee Web Portal Access
- Time Capture Systems and Electronic Transmission to PEO Payroll Processing