How Do You Record Wages When Using a PEO?
Have you ever wondered how do you record wages when using a PEO? PEOs handle all records of wages for you, from payroll taxes to comprehensive reports. For many business owners, keeping track of payroll expenses is costly and time consuming, as it eats away at valuable energy that could be devoted to other aspects of their company.
But when you decide to hire a PEO, you can focus wholly on your vital business operations while knowing that your payroll responsibilities are in good hands.
How Do You Record Wages When Using a PEO?
Businesses that handle their own payroll duties must keep careful track of a wide variety of expenses, dates, and taxes. When it comes to salary and wage records, these organizations need to record the amount of money earned by each employee within the given accounting period. This involves classifying employees based on if they are salaried or hourly-wage workers, withholding the correct amount for Social Security and other taxes, verifying that employees are paid on time, and numerous other tasks that require a company’s full attention.
But what if that organization decides to hire a PEO? How do you record wages when using a PEO compared to without using one?
The answer is simple: When you hire a PEO, your organization no longer has to record its employee wages, taxes, or other payroll expenses. That’s because the PEO handles all those responsibilities for you. Hiring a PEO means that you get to spend less time on wage records and more time on the operations of your business that only you can perform.
What Other Payroll Duties Do PEOs Handle?
If you’ve been worrying about how do you record wages when using a PEO, you can put those concerns to rest. PEOs take care of all wage records, ensuring that employees are paid the correct amounts in a timely manner.
But PEOs are responsible for far more than your employees’ salary and wage records. They also can handle all of your other payroll responsibilities.
Will your employees be paid weekly, biweekly, or monthly? Are your employees going to receive their payments through direct deposits, paper checks, mobile wallets, or another method? These are questions that your staff will want to know and that you will need to provide consistent answers to. That’s why it’s important to have a clear payroll policy for your company. Your payroll policy can also address benefits packages, such as health insurance and sick leave.
Many businesses have both salaried and hourly-wage workers on their staff. For payroll calculations, it’s important to not only classify these employees correctly, but to make sure they receive the correct amount of money on the date they expect to.
When it comes to hourly employees, it’s also important to keep track of government stipulations, such as policies on minimum wage and overtime. A PEO will help make sure that you’re complying with all of these federal and state regulations.
For each payroll period, you need to figure out how much of each employee’s paycheck needs to be withheld for Medicare and other taxes. Employes are also required to file quarterly reports with the IRS, and most states require similar quarterly updates. A PEO can ensure that all of these withholdings and reports are issued in a timely fashion.
Dread filling out all those payroll forms? When you choose to work with a PEO, you never have to face down another payroll form again. Our PEO will handle all kinds of payroll-related paperwork, including:
- W-2s and W-3s
- 941 quarterly and unemployment forms
- New hire paperwork
- And more
Let Canal HR Make Your Business Life Easier
How do you record wages when using a PEO? Hopefully by now, you know that the answer is: You don’t have to. We will take care of that for you.
In addition to our payroll services, we offer numerous other operations, too. Our business can take care of your workers’ compensation insurance policy to make sure that you’re protected in case of a workplace accident. We have an attorney on-hand in case your business ever needs legal expertise for any reason relating to employee or labor issues.
Canal HR is also proud to offer our clients the following benefits:
- Insurance policies for your employees, such as medical, disability, and dental insurance
- Guidance on HR compliance
- Employee assistance program
- Physical exams, background checks, and drug tests
- And other administrative services
As a small business owner, you have enough to think about when it comes to managing the day-to-day and big-picture operations of your company. Here at Canal HR, we’d be delighted to make your business life a little easier by helping with your payroll, HR, and administrative responsibilities. Contact us today to learn more about how we can benefit your business.