Payroll Tax Compliance Big in 2020
Mar 10, 2020
Payroll Tax Compliance Big in 2020
Compliance will continue to be the BIG topic for 2020.
As the recent political environment has shown the idea that tax policy will change little in 2020 is laughable. The federal government will continue to make changes and no one knows exactly what direction tax code and legislation will go.
What we do know is with the nature of universal health care and states implementing individual mandates many taxing authorities are likely to be impacted.
How Does This Impact Payroll Administrators?
The most obvious outcome of such volatility is that change in rates, formats, forms, and filing requirements are a certainty. Keeping up with those changes and remaining in compliance will be an even more difficult task for payroll administrators than it has been in the past.
As states attempt to comply with new federal standards and respond to their own fiscal needs, the more likely there will be multiple changes during the next ten months.
Forms will change to accommodate new taxes, changing rates, and increased limits as well as new calculations required for compliance. More and more businesses will be required to eFile as agencies seek to save money by eliminating paper forms.
What payroll administrators do to guarantee compliance.
It the past it would really boil down to two options:
- Businesses could hire additional staff to monitor the changes that affect their business.
- Rely on outsourcing compliance professionals for filing services or payroll services and their process.
These two options tend to be very expensive and eliminate the ability to control their own payroll from start to finish.
New Payroll Reporting Option.
In the last ten or more years a new option has emerged as payroll software companies have partnered with payroll reporting software and e-filing services to take advantage of the compliance expertise in those companies.
A solution that is fully integrated into the payroll software is the best choice. It eliminates the need to transfer manual reports or transcribe info to a third party. It provides a familiar interface and improved accuracy as the actual paycheck data is used to produce the filing information.
If your software has not yet partnered with an eFile and compliance service you might want to consider a software solution that can. This will save time and money!
Aatrix Software is the solution for all of your compliance challenges in 2020. Ask your provider if Aatrix solutions are integrated in your platform.
“This system works great and help busy Business Owners manage their business and not have to worry about payroll reporting requirements.”
Pro-form Plastics, Inc.
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