6 Challenges When Running Payroll For Out-Of-State Employees (1)

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6 Challenges When Running Payroll For
Out-Of-State Employees
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• Nowadays, businesses have been forced to evolve
  in order to become less decentralized and a lot
  more flexible, especially in light of the way in
  which the entire world is more connected now than
  ever before.
• With workforces no longer restricted by the
  physical boundaries of an office, more and more
  employers are taking on employees from different
  states, which can be great for a business, but
  which also brings a unique and challenging set of
  rules for payroll administrators.
• If youre running payroll for out-of-state
  employees, or are considering doing so, here are
  6 common payroll challenges youre likely to face

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• 1. Variations in state and local taxes
• With every U.S. state having its own set of tax
  laws that are quite distinctive and unique,
  variations in such things as withholding
  requirements and income tax rates, can prove
  difficult to calculate. It can also prove
  problematic in terms of being able to accurately
  withhold both state and local taxes for employees
  working outside of the state your business is
  registered in. If a business is operating in more
  than just one or two states, these variations in
  taxes can multiply and become even more complex.
• By employing a tax professional, however,
  businesses can keep themselves up-to-date with
  all changes to tax laws and regulations that
  might affect them, and better manage the payroll
  challenges and complexities they are likely to
  face.

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• 2. Business registration
• If you hire employees in a state in which your
  company has no physical presence, you may create
  a legal term known as a nexus. If established,
  nexus could mean that as a business, you would be
  obliged to register in that same state, which
  could prove extremely problematic in terms of
  extra compliance requirements and further
  administrative burdens.
• To help you avoid potential and costly penalties,
  its best to consult with a legal professional or
  company specializing in payroll and tax laws, who
  can guide you better.

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• 3. Deductions and benefits
• Involving so much more than simply ensuring your
  employees get their wages on time, managing
  payroll is also about accurately administering
  various deductions and benefits. And with each
  state having different rules surrounding this,
  navigating these rules can be time consuming and
  complex without the help of a payroll management
  provider.

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• 4. Wage and hour laws
• With each state having differing wage and hour
  laws, encompassing such things as break periods,
  regulations regarding overtime, and rules
  surrounding minimum wages, getting to grips with
  them doesnt just affect the bureaucratic element
  of running a business, but can have a significant
  impact on the morale and productivity of
  employees, too. Hence its important to get all
  of these factors right when running payroll, and
  ideally, with the help of software and an
  outsourced payroll management firm.

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• 5. Reporting and filing in multiple states
• With each state having specific requirements as
  to the filing and reporting of payroll taxes,
  without software or expert help to navigate these
  notoriously tricky waters, employers could face
  an increase to their workload, or penalties for
  inaccurate filing or missed deadlines.
• 6. Remote work policies
• With remote working becoming the norm nowadays,
  each company dealing with employees from multiple
  states, must establish policies and guidelines
  that contain clear instructions as to the
  tracking of hours worked, eligibility for
  overtime and reimbursements for expenses related
  to the business.

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• A comprehensive policy that takes into account
  all relevant payroll considerations for remote
  working is essential, and a payroll management
  firm can help you establish this.
• While it may appear as if the complexities of
  managing payroll for out-of-state employees are
  too much to make it worthwhile, with the right
  professional guidance and support, it can prove
  beneficial for both employer and employee.

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• Apollo Payroll is dedicated to delivering expert
  advice, responsive service, and highly accurate
  payroll processing and reporting to ensure the
  success and growth of the business that we serve.
  Our services include comprehensive payroll
  services in Homestead and other cities in
  Miami-Dade County, employee background check and
  group health insurance in Miami Coral Gables