Payroll compliance is probably a concern in your business these days. It’s on the minds of most HR managers and business owners, especially as the government rolls out new tax acts. As the taxation framework changes at both the federal and state level, you’ll have to stay on your toes.
Nonetheless, compliance can be a complex task to manage. First, you need to stay apprised of all the latest goings-on and all of the changes. Next, you may sometimes feel like you need a translator to understand how changes or new legislation affect your payroll.
If you’ve ever felt this way, you’re not alone! In fact, most HR staff, business owners, and managers have questions about payroll compliance from time to time. The biggest question, however, is where can you turn when these questions crop up?
The first stop on your list might be the Internal Revenue Service itself. As the federal agency responsible for administering the tax regime and collecting tax remittances, they usually have a good understanding of what a business owner like you needs to do when it comes to maintaining payroll compliance.
The IRS usually posts updates about new legislation and effective changes. They also offer free guides on many subjects, which could walk you through some of your more basic questions and concerns.
The IRS can be confusing and trying to dig up the information you need can be an involved process. You probably won’t have much luck getting someone on the phone either. If your payroll compliance question extends beyond the basics, the IRS probably won’t be much help to you. They’re also not very helpful when it comes to dealing with state tax regimes, so you’ll need to look elsewhere.
A Business Association
You may be lucky enough to work in an industry with a national, state, or even local business association. Whether it’s a city association of small business owners or a nationwide consortium of manufacturers and producers, a business association can be an invaluable resource for those with payroll compliance question.
The association may have a “FAQ” section on its website or other literature for members. These resources may cover some of the more basic questions you have, and they’ll deal with both state and federal tax regimes.
For the more complex payroll compliance questions, the association may be able to connect you to legal counsel for some solid advice. Most associations maintain connections with their own lawyers. They may be able to recommend a tax specialist or another local practice.
Keep in mind payroll compliance does have a legal dimension. Non-compliance can carry with it hefty fines and penalties, so if you have questions, seeking legal advice isn’t a bad idea.
A Payroll Provider
Who else has the expertise and know-how to advise you on even the most complex payroll compliance questions? What about the people who deal with payroll on a day-to-day basis?
Payroll providers are wonderful resources for your business, not just because they can help you administer payroll more efficiently. They’re also excellent knowledge bases for all things payroll! Since they’re working with many different clients in different states, of different sizes, and in different industries, they are always one step ahead.
Payroll providers are probably more uptodate on the latest goings-on in the tax world than even your own HR staff. They need to be in order to effectively administer payroll for their clients. If you have questions, a payroll provider is in an excellent position to help answer them.
By making use of these resources, you can answer even the most complex payroll compliance questions. If you need help, don’t be afraid to ask.