There aren’t many business owners who would complain about their business growing. In fact, year-over-year growth tends to be one of the most important indicators for business performance. After all, if you are growing, you must be doing something right. While growth tends to be good, as the musical artist The Notorious B.I.G. once said, “more money, more problems.”
Watching your company grow can be exciting but comes with many new challenges. Solutions that might've worked while you were smaller begin to show their limitations as you start to demand more out of them and need them to scale to your new size.
If your company has expanded to the point in which you have employees working in multiple states or localities with different tax law implications but you're still using a payroll software that doesn't allow you to easily manage those regulations, it might be time to start looking for a new solution.
And not to make a complicated situation even more complicated, but the downward spiral all starts with properly calculating pay and taxes. In other words, if tax calculations are wrong, then tax deposits are wrong. If tax deposits are wrong, then tax filing is wrong. I think you get the picture. The most important place to start with accuracy in taxes is at the very beginning.
While it is ultimately the responsibility of your employees to ensure their taxes are correct, your employees may not appreciate it if they find out that they owe lots of money during tax season due to your company not withholding enough pay. Many of your employees will be relying on you to make the correct withholdings for budgeting purposes, and if you're too far off – perhaps due to not withholding a local city tax, for example – your employees may be put in a situation in which they are unable to accurately file their taxes. This will end up negatively effecting your business by decreasing employee retention if employees feel as though you're to blame and leave to find employment elsewhere.
With how difficult it is to find great employees, it's important to remove all negative employee experiences that you can to keep your best employees around for longer. The return on investment will be higher rates of employee retention and an increase in goodwill between yourself and your staff.
Some things are easier said than done. Unless you have tax compliance experience, understanding and keeping up to date with tax laws will be an uphill battle. If you do have tax compliance experience, as a CPA or other related license, unless you are dedicated to staying on top of changing tax laws across all the different areas your employees work and live, it will only become harder to balance handling tax withholdings and all your other duties as an admin.
Simply put, taxes are anything but simple. They require a high level of tax expertise that most payroll admins, let alone other staff members, don’t have. In addition, as your company grows larger, it becomes increasingly difficult to keep up with.
To avoid the negatives of improperly handling tax withholdings, Viventium handles it for you. Viventium Payroll uses a Geo Tax feature that uses the employee’s place of residence and work location to figure out which local or state taxes apply. As long as you ensure that the employee’s geographic information remains up to date on their profile, Viventium will inform you of the relevant taxes that apply to them.
As your business grows larger, features like Geo Tax move from a "nice to have" to an absolute necessity. Your time is valuable and your employees happiness is priceless. By using Viventium, you no longer have to worry about whether or not you are correctly withholding the correct amount of tax from your employees and you can spend your time on the plethora of other tasks that your businesses needs in order to run at its absolute best. Let us handle the payroll.
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