As businesses begin to change their operations, they also begin to change internal administration methods. One of these methods deals with the human resources department. For example, you may find you are hiring more virtual workers and employees that work on a part-time basis or as needed. By using this type of hiring, you may start to notice the need for a different sort of payroll department. Professional employer organization (PEO) payroll deals directly with this situation. Here are some reasons you need a bookkeeper skilled in PEO payroll to handle this change in human resources hiring.
Contracts
When you are dealing with an administrative change where new hires may have many different work situations, you will likely have multiple contracts. Each freelance worker or independent worker will have a different contract. One person may have a contract that states they are working specific hours. Another contract may state they are an employee and on salary even though they are working at home. Your PEO payroll staff needs to understand these different contracts in order to input the proper information for those who are freelance and paying their own taxes. This means you are not taking anything out of their checks for taxes and that needs to be noted properly in the bookkeeping software.
As-Needed Workers
You may decide to have workers on an as-needed basis. This is likely if you have seasonal workers for holiday seasons. You may also have warehouse workers or inventory specialists that only work a few times a year or even twice a month. A PEO payroll staff member needs to know how to note this, how to maintain them in the system, and how to handle tax paperwork in order to have accurate books, billing, and payroll.
Taxes and Tax Forms
Taxes and tax forms are important for not only your business but also your staff's yearly tax reporting. You need to have a payroll administrator who is well educated on various types of payroll situations. This can ensure they can handle the payroll and tax paperwork for any type of employee or contractor on your payroll. The ideal candidate would know what tax paperwork and forms are needed, how to fill them out, and how to advise these workers on their pay stubs.
In addition to making sure your bookkeepers have a background in PEO payroll, you can also consider hiring additional staff that has certifications or special training in this type of payroll. When you do this you can ensure your payroll is covered. You can also ensure your books are being handled accurately when PEO payments are concerned.
Contact a PEO payroll service, such as Innoworks Employment Services, to learn more.
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