Fortune Business Consulting

Tag: business payroll

  • How to Improve Company Benefits Package For Better Employee Retention?

    How to Improve Company Benefits Package For Better Employee Retention?

    [et_pb_section fb_built=”1″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column _builder_version=”4.9.3″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.9.3″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

    In recent times, more and more businesses are offering employee benefits packages to ensure the interest of their talented employees and attract new ones. This makes it important for others to pull up their socks to improve their existing package to avoid losing their workers’ loyalty and productivity. 

    This package generally includes compensation in money, special perks, and rewards. However, those who do not want to spend money can always offer more leaves to compete with companies. More such ideas have been mentioned down here!

    [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column _builder_version=”4.9.3″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.9.3″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

    5 Ways to Improve Employee Benefits Package

    It is important for company management to focus on improving its benefits package as the same helps them in many ways. For example, it helps improve the retention rate of the organization, as employees will be willing to stay in the company, aligning business needs with their targets, driving organizational goals, and building a better brand. Some effective ways to achieve this are:

    • Insurance Plans

    Offering insurance plans to employees is a great way for companies to show they care about their employees. Under this plan, a specific amount is insured to cover their employees’ medical expenses. This backs up any loss incurred due to sudden death, disability, accidents, or dismemberment. Also, employers can cover other types of medical expenses, like biometric screening, dental check-ups, etc.

    • Corporate Discounts

    Offer corporate discounts on the original price of certain goods and services (which generally include the items the organization deals in). These can only be availed by the company’s employees and are often used to test new products before launching them in the market.

    • Paid Leaves

    When a company is a start-up or does not earn much profit, it becomes difficult to benefit employees in monetary terms. In this case, employers can give more paid leaves to compete in the face of paid vacation, sick leaves, parental leaves, etc. 

    Many corporates still do not realize the importance of parental leave, but employees must be given some time off to take care of their families and children to maintain a work-life balance.

    • Office Perks

    To make the office a fun place to work in, many organizations design joyous activities. It includes playing board games, scheduling food events, and other parties. In fact, many workplaces have even incorporated nap rooms for better productivity.

    • Wellness Programs 

    It gives employees a sense of trust and valuation that the company cares for their health if it designs a wellness program for them. In addition, these programs also ensure their employees maintain a healthy way of living. This, in turn, improves productivity and retention rate. Some wellness programs one can launch are smoking cessation, gym memberships, weight-loss competition, health screening, etc. 

    [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column _builder_version=”4.9.3″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.9.3″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

    What Is the Importance of Offering Employee Benefits Package?

    When a business is small, and management is running a tight ship around, it may strike the mind whether the cost is worth it? The answer is yes. The employee benefits package is important for reasons like –

    • It minimizes employee turnaround time 
    • Employers can attract the most talented employees
    • It boosts productivity as an employee feels happier and more loyal
    • The company can maintain better worker morale

    From the above information, it might be clear now why every company must improve their employee benefits package and how it helps the company. However, to ensure the success of the initiative taken, one may need a strong management system to control the changes. If looking for one, then contact us. We can help overcome challenges relating to payroll, HR management, employee compensation, paid leaves, etc. Also, if you want to know more about management and services, don’t forget to scroll through our blog section.

    [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column _builder_version=”4.9.3″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.9.3″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

    Reference Links:

    https://www.business.org/hr/benefits/top-reasons-to-offer-employee-benefits/

    https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/employee-compensation-incentive-and-benefits-strategies/

    https://blog.vantagecircle.com/employee-benefits-compensation-ideas/

    https://kiwihr.com/blog/employee-benefits

    [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Contact” _builder_version=”3.22″ background_color=”#012780″ use_background_color_gradient=”on” background_color_gradient_start=”#012780″ background_color_gradient_end=”rgba(1,39,128,0)” background_color_gradient_end_position=”60%” background_color_gradient_overlays_image=”on” background_image=”https://wordpress.fortunebizconsulting.com/wp-content/uploads/2020/03/insurance-01.png” background_size=”initial” custom_padding=”54px|0px|120px|0px|false|false”][et_pb_row module_id=”contact_form” _builder_version=”4.4.4″ background_color=”#ffffff” custom_margin=”80px|||” custom_padding=”80px|6%|80px|6%|true|true” animation_style=”zoom” animation_intensity_zoom=”-5%” animation_speed_curve=”ease-in” border_radii=”on|10px|10px|10px|10px” box_shadow_style=”preset1″ box_shadow_vertical=”40px” box_shadow_blur=”80px” box_shadow_color=”rgba(55,104,238,0.15)”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.4.4″ text_font=”Montserrat|300|||||||” text_font_size=”16px” text_line_height=”2em” header_font=”||||||||” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.4em” text_orientation=”center” max_width=”700px” module_alignment=”center” custom_margin=”||60px|” header_2_font_size_tablet=”30px” header_2_font_size_phone=”24px” header_2_font_size_last_edited=”on|phone” locked=”off”]

    Contact Us

    Find out if a PEO is the right solution for your business.
    Fill out the form below and we will contact you to schedule a chat.

    [/et_pb_text][et_pb_contact_form use_spam_service=”on” recaptcha_list=”Default-0″ recaptcha_min_score=”0.7″ email=”stephanie@fortunebizconsulting.com” custom_message=”New Form Submission!||et_pb_line_break_holder||||et_pb_line_break_holder||First Name: %%FirstName%%||et_pb_line_break_holder||Last Name: %%LastName%%||et_pb_line_break_holder||Company Name: %%CompanyName%%||et_pb_line_break_holder||Company Email: %%CompanyEmail%%||et_pb_line_break_holder||Phone: %%Phone%%||et_pb_line_break_holder||Message: %%Message%%” module_id=”et_pb_contact_form_0″ _builder_version=”4.4.4″ form_field_background_color=”rgba(0,0,0,0)” form_field_font=”Lato||||||||” custom_button=”on” button_text_size=”14px” button_text_color=”#ffffff” button_bg_color=”#003bde” button_border_width=”10px” button_border_color=”rgba(0,0,0,0)” button_border_radius=”4px” button_letter_spacing=”1px” button_font=”Montserrat|||on|||||” border_radii=”on|6px|6px|6px|6px” border_width_all=”2px” border_color_all=”rgba(51,51,51,0.06)” form_background_color=”rgba(0,0,0,0)” button_bg_color_hover=”#0053ef” button_border_radius_hover=”4px” button_letter_spacing_hover=”1px”][et_pb_contact_field field_id=”FirstName” field_title=”First Name*” min_length=”2″ _builder_version=”4.4.4″][/et_pb_contact_field][et_pb_contact_field field_id=”LastName” field_title=”Last Name*” min_length=”2″ _builder_version=”4.4.4″ button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][et_pb_contact_field field_id=”CompanyName” field_title=”Company Name*” min_length=”2″ _builder_version=”4.4.4″][/et_pb_contact_field][et_pb_contact_field field_id=”CompanyEmail” field_title=”Company Email*” field_type=”email” _builder_version=”4.4.4″ button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][et_pb_contact_field field_id=”Phone” field_title=”Phone*” allowed_symbols=”numbers” _builder_version=”4.4.4″][/et_pb_contact_field][et_pb_contact_field field_id=”Employees” field_title=”Number of employees*” allowed_symbols=”numbers” _builder_version=”4.4.4″][/et_pb_contact_field][/et_pb_contact_form][/et_pb_column][/et_pb_row][/et_pb_section]

  • Planning Payroll Tax for Your Business in 2022? Know Everything About It Here!

    Planning Payroll Tax for Your Business in 2022? Know Everything About It Here!

    [et_pb_section fb_built=”1″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_text _builder_version=”4.9.3″ _module_preset=”default”]A business owner needs to do quite a lot when it comes to running the entire system appropriately. One of those tasks includes planning payroll taxes of the employees in the organization. There are several vital aspects related to the whole process, and it is imperative for all business owners, especially the ones starting off, to have a clear understanding of these.[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column _builder_version=”4.9.3″ _module_preset=”default” type=”4_4″][et_pb_video src=”https://www.youtube.com/watch?v=bCMMsJbV38w” _builder_version=”4.9.3″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″][/et_pb_video][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_text _builder_version=”4.9.3″ _module_preset=”default”]

    Understanding Payroll Tax

    Before knowing how to plan or calculate payroll tax, the foremost thing for an entrepreneur is to be aware of the key basic details regarding the same.

    Employers withhold a percentage as payroll tax from employees’ pay and then pays it to the government on the latter’s behalf. This tax is based on salaries, tips and wages paid to employees.

    Moreover, business owners must note that several laws exist that define whether or not a worker is subject to payroll taxes. In general, if an employer controls and directs not only the work results but how a worker does the work, then such a worker is classified as an employee and subject to payroll taxes. Otherwise, the worker may be considered an independent contractor and therefore not subject to payroll taxes. Part-time workers can be regarded as employees for payroll tax.

    If a business owner fails to withhold taxes or misclassifies a worker as a contractor, the Internal Revenue Service (IRS) can impose penalties.[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_text _builder_version=”4.9.3″ _module_preset=”default”]

    Calculating Payroll Tax

    Business owners need to calculate payroll taxes using the employees’ total wage or gross earnings and several other deductions to compute the take-home or net pay. While this does sound simple, it demands attention and considerable accuracy.

    To calculate net pay, business owners can apply the following formula:

    Net pay = Employee’s gross pay (pay rate x number of hours worked) – statutory payroll tax deductions – voluntary payroll deductions.

    As per the law, business owners need to withhold the statutory payroll tax deductions from the paycheck of an employee each pay period. Following that, they should transmit these withholdings to different tax agencies.

    On the other hand, entrepreneurs must note that they can withhold the voluntary payroll deductions from the paycheck of an employee only if the latter has agreed to the same. These deductions contribute toward or pay for different benefits that an employee has opted to participate for.[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_text _builder_version=”4.9.3″ _module_preset=”default”]

    What Do a Business Owner’s Payroll Tax Obligations Consist of?

    The payroll tax obligations of a business owner comprise a combination of these:

    • FICA taxes: A part of the taxes that business owners withhold from wages of employees are FICA (Federal Insurance Contributions Act) taxes, covering Medicare and Social Security contributions. Both the employees and the employer pay an equal share of FICA taxes.
    • Federal income tax withholding: Every employee should fill out a W-4 form to list their withholding exemptions, marital status, and other factors affecting withholding. Business owners use the IRS tax tables to calculate the amount to withhold. The main purpose is to arrive close to every employee’s year-end tax liability.
    • State and local payroll taxes: If the business is based in a state with a personal income tax, the employer will likely have state tax withholding and reporting obligations. Sometimes local tax withholding and reporting obligations are also applicable. A majority of the states allow a business owner to use reporting methods that are similar to those utilized for federal purposes.
    • Unemployment taxes (FUTA): By paying payroll tax depending on various factors, business owners are responsible for contributing to funding the unemployment tax system. These factors include the age and type of business, the unemployment claims filed against the business, and the amounts they pay employees.

    It is imperative to keep in mind that if your organization lacks proper infrastructure related to risk management, HR, and payroll, you can face hassles to plan payroll tax. For that matter, you can consider us as a viable option to manage these key areas. Additionally, you can go through our blogs to gain an insight into what we do.[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_text _builder_version=”4.9.3″ _module_preset=”default”]Reference Links:

    https://www.investopedia.com/terms/p/payrolltax.asp

    https://www.thehartford.com/business-insurance/strategy/understanding-business-taxes/payroll-taxes

    https://www.thebalancesmb.com/payroll-taxes-3193126[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Contact” _builder_version=”3.22″ background_color=”#012780″ use_background_color_gradient=”on” background_color_gradient_start=”#012780″ background_color_gradient_end=”rgba(1,39,128,0)” background_color_gradient_end_position=”60%” background_color_gradient_overlays_image=”on” background_image=”https://wordpress.fortunebizconsulting.com/wp-content/uploads/2020/03/insurance-01.png” background_size=”initial” custom_padding=”54px|0px|120px|0px|false|false”][et_pb_row module_id=”contact_form” _builder_version=”4.4.4″ background_color=”#ffffff” custom_margin=”80px|||” custom_padding=”80px|6%|80px|6%|true|true” animation_style=”zoom” animation_intensity_zoom=”-5%” animation_speed_curve=”ease-in” border_radii=”on|10px|10px|10px|10px” box_shadow_style=”preset1″ box_shadow_vertical=”40px” box_shadow_blur=”80px” box_shadow_color=”rgba(55,104,238,0.15)”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.4.4″ text_font=”Montserrat|300|||||||” text_font_size=”16px” text_line_height=”2em” header_font=”||||||||” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.4em” text_orientation=”center” max_width=”700px” module_alignment=”center” custom_margin=”||60px|” header_2_font_size_tablet=”30px” header_2_font_size_phone=”24px” header_2_font_size_last_edited=”on|phone” locked=”off”]

    Contact Us

    Find out if a PEO is the right solution for your business.
    Fill out the form below and we will contact you to schedule a chat.[/et_pb_text][et_pb_contact_form use_spam_service=”on” recaptcha_list=”Default-0″ recaptcha_min_score=”0.7″ email=”stephanie@fortunebizconsulting.com” custom_message=”New Form Submission!||et_pb_line_break_holder||||et_pb_line_break_holder||First Name: %%FirstName%%||et_pb_line_break_holder||Last Name: %%LastName%%||et_pb_line_break_holder||Company Name: %%CompanyName%%||et_pb_line_break_holder||Company Email: %%CompanyEmail%%||et_pb_line_break_holder||Phone: %%Phone%%||et_pb_line_break_holder||Message: %%Message%%” module_id=”et_pb_contact_form_0″ _builder_version=”4.4.4″ form_field_background_color=”rgba(0,0,0,0)” form_field_font=”Lato||||||||” custom_button=”on” button_text_size=”14px” button_text_color=”#ffffff” button_bg_color=”#003bde” button_border_width=”10px” button_border_color=”rgba(0,0,0,0)” button_border_radius=”4px” button_letter_spacing=”1px” button_font=”Montserrat|||on|||||” border_radii=”on|6px|6px|6px|6px” border_width_all=”2px” border_color_all=”rgba(51,51,51,0.06)” form_background_color=”rgba(0,0,0,0)” button_bg_color_hover=”#0053ef” button_border_radius_hover=”4px” button_letter_spacing_hover=”1px”][et_pb_contact_field field_id=”FirstName” field_title=”First Name*” min_length=”2″ _builder_version=”4.4.4″][/et_pb_contact_field][et_pb_contact_field field_id=”LastName” field_title=”Last Name*” min_length=”2″ _builder_version=”4.4.4″ button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][et_pb_contact_field field_id=”CompanyName” field_title=”Company Name*” min_length=”2″ _builder_version=”4.4.4″][/et_pb_contact_field][et_pb_contact_field field_id=”CompanyEmail” field_title=”Company Email*” field_type=”email” _builder_version=”4.4.4″ button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][et_pb_contact_field field_id=”Phone” field_title=”Phone*” allowed_symbols=”numbers” _builder_version=”4.4.4″][/et_pb_contact_field][et_pb_contact_field field_id=”Employees” field_title=”Number of employees*” allowed_symbols=”numbers” _builder_version=”4.4.4″][/et_pb_contact_field][/et_pb_contact_form][/et_pb_column][/et_pb_row][/et_pb_section]

  • What is the Difference Between a PEO and a Payroll Company?

    What is the Difference Between a PEO and a Payroll Company?

    [et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”3.22″ custom_padding=”||0px|||”][et_pb_row admin_label=”row” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_module=”1652″][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.9.3″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ min_height=”3933px” sticky_enabled=”0″ custom_padding=”||0px|||”]

    NO ONE starts a business to be bogged down by paperwork and administrative encumbrances. Sadly, it’s essential!

    If yours is a small business with only a handful of employees, these tasks may not take up much of your time. However, in a growing enterprise, paperwork compounds to occupy a sizeable portion of time and resources, taking the focus off the bigger picture.

    That’s where PEOs and payroll companies come into the picture! But, what do they do, how are they different, and which one is more beneficial?

    To find answers to these questions and more, read along!

    PEO vs PSP: Meaning

    A PEO or Professional Employer Organization specializes in services related to Human Resources for enterprises of varying scales, especially small and medium-sized.

    In the US, roughly 175,000 organizations resort to PEOs.

    They partner with businesses to take over their gamut of HR duties such as hiring staffs, managing and training a team, seeing to payrolls, compensation & claims, taxes, and employee benefits, among others.

    A PSP or payroll service provider is exclusively concerned with payroll solutions. They disburse the salaries as per the schedule and take care of related taxes.

    Although some PSPs might offer additional services, the liability of human resources rests with the concerned business.

    Essentially, a PEO is a partner, whereas a payroll company is a service provider.

    Thus, when outsourcing human resources for your small and mid-sized business, consider whether you need a service provider or a partner.

    PEO vs PSP: Who is the Employer of Record?

    An employer of record assumes all the responsibilities of human resources, from hiring employees to worker’s compensation and paying federal taxes. It is to be held liable in case of discrepancies in the same.

    When you use a Professional Employer Organization, it becomes the employer of record. Thus, a PEO bears any fine or expense arising out of the HR department. PEOs and payroll form a significant connection for any small and mid-sized company since it divvies up the liability.

    Fact: More than 33% of small companies managing HR duties on their own pay fines every year to the IRS.

    In case you use a payroll company, you are responsible for those liabilities since you continue to be the employer of record while the PSP merely sees to salary and tax payments.

    PEO vs PSP: Cost Savings

    Entering into a partnership with PEO might cost more than using a PSP, but the investment pays for itself on many fronts.

    In fact, according to a NAPEO report, 70% of companies have reported an uptick in their revenues ever since they became a PEO client. Near about 66% of enterprises registered significant profitability by signing up with a Professional Employer Organization.
    Savings on employee health benefits is one of the more essential points to that end. PEOs have access to discounted rates of health coverage only available to large corporations.

    Premised on the state in which you are based, savings in health insurance policies can be as much as $2400 per employee annually with a PEO. Similarly, for 401(k), your business can save significantly on a per-employee fee since you’ll be benefitting from a PEO’s large investment capacity.

    Your business can also gain a competitive edge with premium worker’s compensation programs at reasonable rates, exclusively offered to large organizations.

    With a PSP, these benefits are not available. You remain liable for securing a health insurance policy and worker’s comp program. Although, PSPs might extend relevant options from their network. Even in the case of 401(k), you need to pay charges per your employee strength and cannot leverage a larger company’s investment capacity for reduced fees.

    The aforesaid points only cover the direct distinctions between using a PEO and a payroll company. A PEO extends several other advantages over a payroll company.

    Most notably and recently, PEO clients were reported to be 119% more likely to receive Paycheck Protection Program Loans, a financial aid extended by the US government in response to the economic upheaval the Covid-19 pandemic caused. PEOs facilitated applications for PPP loans even before banks started to accept those.

    Nonetheless, no single solution can fit all.

    Evaluate your business’s requirements and scale to judiciously select a PEO or payroll company. Schedule a free consultation with us today to gain further clarity into which one would be a better fit for your business.

    Request your quote for payroll or PEO services today

    [/et_pb_text][et_pb_contact_form _builder_version=”4.9.3″ _module_preset=”default” custom_margin=”-3px|||||”][et_pb_contact_field field_id=”Name” field_title=”Name” _builder_version=”3.16″ button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][et_pb_contact_field field_id=”Email” field_title=”Email Address” field_type=”email” _builder_version=”3.16″ button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][et_pb_contact_field field_id=”Message” field_title=”Message” field_type=”text” fullwidth_field=”on” _builder_version=”3.16″ button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][/et_pb_contact_field][/et_pb_contact_form][/et_pb_column][/et_pb_row][/et_pb_section]
  • 2021 Tax Deadlines for Small Businesses

    2021 Tax Deadlines for Small Businesses

    [et_pb_section admin_label=”section”] [et_pb_row admin_label=”row”] [et_pb_column type=”4_4″][et_pb_text admin_label=”Text”]

    Many business owners are scrambling to effectively run their business. The last thing you want on your plate is having to recall the various tax deadlines for small businesses, not to mention the various changes. We’ve created a list of key deadlines to note to make taxes a breeze.

    2021 Income Tax Filing Deadline Moved to May 17th

    The IRS has moved the income tax filing deadline This date change is for individuals for the 2020 tax year and is extended from April 15, 2021 to May 17th, 2021.

    Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17. (IRS)

    Many self-employed individuals and businesses must submit estimated tax payments quarterly and file an income tax return annually. The filing dates vary primarily on your entity structure i.e., partnership, S corporation, or sole proprietorship. Sole proprietorships use the same tax schedule s individuals, so 2020 returns are due May 17th 2021. If you are an S corporation or partnership however the return is due on March 15, 2021.

    Estimated quarterly tax payments

    If you are self-employed, sole proprietor, partner, LLC member or independent contractor and pay estimated taxes, quarterly tax payments are due by the following dates:

    • April 15th, 2021 for Q1
    • June 15th ,2021 for Q2
    • September 15th, 2021 for Q3
    • December 15th, 2021 for Q4 (C corporations only)
    • January 18th, 2022 for Q4

    The IRS is a great resource of quarterly estimated tax payments.

    Why you should consider outsourcing your payroll

    Employment Taxes and Payroll Withholdings

    Form 941 states that small businesses must deposit employment taxes monthly or semi-weekly. Items subject to this requirement include federal income tax, federal unemployment (FUTA) tax, and Social Security / Medicare (FICA) withholdings. Employers must also report their payroll withholdings either on an annual basis or quarterly basis using IRS form 941, 943, 944, or 945.

    Form 941 deadlines:

    •  April 30th, 2021
    • July 30th, 2021
    • October 29th, 2021
    • January 31st, 2022

    Corporate Income Tax Returns

    Tax returns for companies are due on April 1thth, 2021 for income received in 2020. By filing Form 7004 businesses my request an extension of six months. The first quarterly estimated tax payment of the year is also due on this date.

    S Corporations and Partnership Income Tax Returns

    For businesses classified as either an S corporation or partnership, you deadline for submitting your tax return is March 15th 2021 or the third month after the end of your organizations tax year. Partnerships must complete form 1065 which is used to generate a Schedule K-1 earnings statement for each partner. For S corporations, Form 1120S is needed to prepare the Schedule K-1.

    A six-month extension can be requested by submitting Form 7004 along with a deposit equal to the amount of estimated tax owned.

    2021 Tax information and resources

    This guide is intended to be a resource for business owners and individuals related to tax deadlines. With the various changes as a result of COVID-19, some of the dates may change in addition to being able to qualify for various tax credits for certain expenses. The IRS Small Business and Self- Employed Tax Center is a great resource. If you are a business owner and need assistance with payroll, FICA, FUTA, and other taxes related to business ownership Fortune Business Consulting is also a great resource. Payroll processing services, tax remittance, and HR management are other areas that can assist with being prepared for all of the various tax deadlines.  

    Request your quote for payroll or PEO services today

    [hubspot portal=”4231661″ id=”2a04c995-e102-4d19-a345-0fef6d45623f” type=”form”] [/et_pb_text][/et_pb_column] [/et_pb_row] [/et_pb_section]