If you’re a business owner or manager, you are well aware of the many hats you must wear in the small business world. Not only do you have to worry about productivity, financials, recruiting, HR, training, benefits and more…that end-of-year requirement, W-2s, is also critical. Employees need these forms to be correct and timely so they can file their taxes. As an employer, your responsibilities include:
- Reporting income
- Reporting taxes withheld
- Depositing those taxes every quarter (form 941)
- Filing FUTA form annually and depositing taxes
Each year, employers are required to make W-2s available to all employees from the previous year (e.g. 2016) electronically or by mail, no later than January 31st.
This list may not be so overwhelming at first glance, but when you’re dealing with not only your own employees’ paychecks but also the IRS, you can’t afford to miss a deadline or skip a payment, and penalties are always waiting just over the horizon. There are consequences for errors, delinquency and lack of compliance. For instance, criminal and civil sanctions for failing to pay employment taxes can result in substantial penalties.
There are ways to get all this transactional work done affordably and enjoy peace of mind while you focus on actually growing your business. For example, outsourcing your payroll to a Professional Employer Organization (PEO) is like having expert back office help in transactional areas such as: complying with federal and state laws, processing payroll on time, complying with ACA reporting, and preparing W-2s without you having to deal with it all. Moreover, working with a PEO will allow you to transfer payroll liability and get rid of the administrative burden.
There’s no need to suffer through W-2s and other payroll headaches. Answer these 8 questions to see if a PEO is right for you.
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