HR and Payroll Services in USA
There is a famous saying which goes like, “You need to keep your warriors happy during a war” and all the entrepreneurs will agree with me that in today’s world with such a cut-throat competition amongst the businesses is no less than a war and the businesses that are going to win it will be those that enjoy the relentless support from their employees embodied warriors.
Payrolls, if done right, don’t generate money, but you can either spend your precious time processing payrolls or you can focus on business development to pay everybody better. Payroll taxes are directly connected with tax. Robust payroll management is important as it is directly linked with taxation requirements at the state and federal level and fair treatment towards employees.
Importance of Payroll
It is indispensable for the business to pay the employees accurately and on time and make the whole process efficient. Making correct deductions, adding the rightful allowances, correctly placing each deduction and allowance as after and before tax, classifying workers as employees and subcontractors, ascertaining exempt and non-exempt employees, managing bonuses, calculating overtime, keeping with deposit dates, etc is a technical work requiring strict adherence and certainly demands professional assistance.
This is not only important for business growth of which employees are an integral part of, but also for the financial health of the business. And if done wrong, it can also lead to differences between management and employees and serious issues during the audit by the Department of Labour, irrespective of your business size!
Need for HR and Payroll Compliance
Small Business Administration by definition has allotted certain duties to the Human Resource Management department of an organisation including recruitment, hiring, training, payrolls, employee benefits, maintaining the workplace’s environment, etc. All these tasks needed to be done keeping the best interest of the employees, budget of the business and federal and state laws and non-adherence can have serious legal and financial consequences for the business. On top of that, quality HR and payroll services also help in attrition and employee turnover rate significantly.
Required Compliances for Payroll
Though these compliances vary from state to state and even from business to business, we have attempted to provide a general list of the requisite compliances every SME needs for payroll compliances:
- Income tax withholdings from employees’ salaries: For state and federal
- Federal Insurance Contribution Act Taxes: Medicare and Social Security
- Federal Unemployment Tax Act
- Fringe Benefits like moving expense reimbursements, uniform allowance, car allowance: reported on W2s
- Classification as an employee and independent contractor
- Fair Labor Standards Act: overtime, minimum wage, record-keeping, etc
- Form I-9 and W-4: In case of new recruits
Required Compliances for HR
- Anti-discrimination laws
- Wage and hour laws: Fair Labor Standards Act and the relevant state law
- Leave laws: Family and Medical Leave Act and the relevant state law
- Immigration laws
- Benefits laws: commonly includes social security and workers’ compensation
- Occupational Safety and Health Administration Act
- National Labor Relations Act
Difference between ITIN and SSN
SSN is for the US citizens and for authorized non-citizens residents (students on F1 visas, Green Card holders, etc). ITIN is for foreign-status residents including undocumented aliens, non-resident aliens, foreign companies, partnerships, and trusts require an ITIN.
SSN is needed to work, collect Social Security benefits and pensions, and are required in order to be eligible for other social services and every American has one as it serves National ID number for the purpose of various financial and medical services. ITIN is required to file for taxes by the non-residents.
We provide umbrella solutions to all the business and financial requirements of your organisation and offer a stupendous value-for-money proposition on retainership so that our clients can save on the outsourcing cost to multiple firms who charge arbitrarily and the administrative hassle that comes with it. We have 5+ years of experience in serving entrepreneurs from India and USA with tailor-made, holistic solutions and our clientele includes top-notch names like Paperboat Apps, VSV Wins Group, Kiddopia USA, Vedic Ghee and many more and we take proud in the fact that we have never disappointed single one of them.
To know more about how we will implement our optimum and innovative solutions in your organization to ensure smooth payroll and HR compliance, give us a call on 7727887799 (also available on WhatsApp) or drop us an email containing your business requirements at email@example.com and our team will reach out to you within 2 hours.
We take care of your HR and Payroll compliances, along with providing a range of other services to take full accountability as the virtual CFO to your business.
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