Back Office Digital Compliance is the key to managing risk and efficiency
There are so many nuances and complexities to providing employees across jurisdictional boundaries. There is always the possibility of changing legislative regulations, new tax rules, and shifts in taxability. Compliance can be either ignored or ground out in terms of manual tasks, laborious spreadsheet exercises, that consume your valuable teams time every report period.
Complexity can be more acute with the impact of COVID and greater remote working, for example, the chance an Assignment place of work and my remote working address can be across a State or City line is higher than ever. Or take a worksite within a short distance of several state boundaries, say Massachusetts, Rhode Island, and Connecticut. These boundaries can impact Pay rates, overtime, tax, and leave entitlements.
Manually addressing these factors is a burden for the fast-paced needs to a modern staffing business. You need a good effective technology. But not all systems are equal. For example, most payroll applications hold a single home and work site address per employee, that’s not a good fit for contingent, temporary workers where we need addresses relative to the assignment. For examples, most Back Office technology rely on the Staffing Business coming up with its own workaround.
And then there is 1Staff Back Office.
Let’s take a look at a few of these complexities and see how 1Staff addresses them as digital straight through process.
Local Payroll Taxes.
While not every State and locality has a local tax, but where they do, they expect filing, returns, on an accurate and timely basis. Temporary, contingent assignments can be spread geographically and for each assignment the place of work and the employee address drive the liability to apply local taxes.
Say your firm places temporary workers on assignment in Pennsylvania. That state has about 3,000 municipalities and school districts all assessing local income taxes, many more than any other state. So take an assignment that covers two warehouses either side of a school district boundary, that will dictate the application and collection of local taxes.
1Staff Back Office handles this by maintaining all the relevant addresses assignment by assignment. A real time call is made to the Symmetry tax service to add the respective local taxes. A Staffing business can complete a large payroll with a whole mix of employee/worksite addresses and this process becomes a digital straight line to pay. Filing, tracking, reporting, is a relative breeze thereon.
Leave PTO entitlements.
Mandated benefits, such as paid sick leave laws, can significantly increase employers’ cost of doing business. Paid leave mandates impose an especially onerous burden on staffing firms, because they must track the hours of large numbers of employees on short-term, intermittent job assignments for purposes of leave accrual and utilization. Employees need a minimum work requirement (e.g., 30 days) before benefits start to accrue, and at least 90 days of employment before accrued benefits can be used. So carefully balancing work where you can, is a significant benefit.
Again, critical to doing this at the pace of business needs effective technology. 1Staff holds the critical information and works hand in hand with Microsoft GP Payroll and Integrity Data’s Comprehensive Leave Management to take this pain and burden away.
Sales Tax is the elephant in the room. Sales and use tax rates are complex and vary across jurisdictions, counties, states, and countries. How does a Staffing business monitor of constantly changing sales tax laws in the states it does business in? Potentially if your company delivers temporary staffing services in any service-taxable state even if the client to whom you sold the services is located in a non-taxable state—you may need to charge your client sales tax on those services delivered in a taxable state.
Well 1Staff integrates to the Avalara service, a platform that automates the major steps of tax compliance. This assesses rates based on geolocation, not ZIP code, so your customers are charged the right rates. Plus, you get address validation for improved accuracy in invoices. Again this all happens digitally and real time as you bill.
Get in Touch
To discuss how we can improve your Staffing Back Office needs and compliance talk to a 1Staff Specialist.
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Professional Advantage has been a multi awarded Microsoft Presidents Club Member and Microsoft Certified Partner for many years, providing software solutions underpinned by Microsoft Dynamics GP and D365/CRM platforms.
With 6,000 customers globally, our focus has always been to help our clients use technology to enable high performing workplaces.