Payroll Challenges And Best Practices As 2023 Moves Forward

As we close out the first quarter of 2023, the future of Payroll and HR has become the now of Payroll and HR. Many of the changes which started during the pandemic have been accelerated and have become permanent aspects of our working lives.

Remote workers have expanded payroll compliance to multiple states for many companies for the first time. Finding efficiencies in an inflationary economy is paramount. And finally, security issues continue to be a primary concern.

Dealing With Multi-State Payroll Compliance

The changes that began during the pandemic, when the only way to keep businesses functioning drove the emergence of remote workers, have continued as much of the workforce now prefers to work from home. This trend has been exacerbated by the difficulty businesses face in finding qualified workers. These two powerful trends have led to many Payroll Administers facing multi-state payroll compliance for the first time.

Keeping track of the crazy amount of legislation going on across the country is virtually impossible for employers. With 20% of all payroll reports changing every quarter, it is imperative to have a payroll solution that provides an in-house reporting feature that guarantees that the forms needed to make payments and report withholdings are always up to date.

Recent IRS data showed that up to one-third of employers made a mistake in any given year that resulted in fines and penalties averaging more than $800.

The most common reason for fines and penalties is the failure to file reports or make payments on time.

Having a payroll solution that provides a calendar to keep track of reports and payment due dates and includes an alert system that sends reminders dramatically reduces the likelihood of missing a filing or payment requirement.

Simplifying Multi-State Payroll Reporting

For employers facing multi-state payroll for the first time, the most astonishing thing they discover is the amount of time that is spent making payments and filing unemployment, new hire, withholding, and other reports. Recent surveys have shown that payroll administrators spend twice as much time processing payroll tax reports and payments than they spend paying employees.

Employers filing in two or three states should not be using state and federal websites because they are terribly inefficient. Tracking seven to ten different processes is difficult since no two are identical. They may require uploads and manual data entry, and these processes often change without warning. Tracking seven to ten different sets of credentials, different methods of confirmation that the filings have been received, and seven to ten different taxing authorities to work with for support or rejection resolution makes this process anything but free and a terrible waste of time.

The answer is, once again, the use of proper technology. The best practice is to find a payroll solution that features a reporting solution with a single login and process to simplify the completion of any required report or payment. Having reports and payments that are automatically filled in with their payroll data, filed using the same login and process no matter the authority involved, a single confirmation method, and one support option to solve any issue with any filing.

Security Multi-State Payroll Reporting

Many states lowered their eFile threshold or outright require eFiling of reports and payments. Security issues, accuracy, and the ability to process reports and payments more efficiently continue to drive the use of eFiling.

According To The IRS

IRS Forms 940, 941, 943, 944, or 945 are used to report employment tax information. The IRS recommends electronic filing, or e-filing, of these returns. 

Benefits of eFiling:

  • It saves you time.
  • It is secure and accurate.
  • You receive acknowledgment within 24 hours.

You will need to purchase IRS-approved software.

Paper filers are missing out on all the advantages of electronic filing. eFiling saves time, and it’s secure and accurate. Plus, the IRS acknowledges receipt of an electronically filed return within 24 hours. That doesn’t happen with paper filing.

It’s much easier to make a mistake on paper. With electronic filing, any mistake is often discovered and fixed quickly. With paper filing, it may take weeks or even months to discover and correct a mistake.

Aatrix Is The Obvious Solution

We intentionally work to make our newsletter relevant, informative, and newsworthy. We do not typically use it for marketing purposes. This article describes exactly why we are in business, and we felt it necessary to interject that Aatrix Payroll Reports And Payments checks all the boxes when it comes to best practices and eFiling. With our Unlimited eFile Package, employers can guarantee compliance, reduce the risk of fines and penalties, simplify multi-state filing, and ensure a secure and accurate method to meet all of your payroll reports and payment needs.