Are you a business owner in over your head when it comes to the State Unemployment Tax Authority (SUTA)? In the past few years, millions of jobs have been lost due to layoffs, company closures, and downsizing. When people who are without work seek unemployment benefits, the money must come from somewhere – It does, most often from the state’s unemployment insurance program. Each state requires employers to pay a SUTA tax – and for small businesses, these taxes can be painful to say the least!
On top of the increasing SUTA rates found in many states, business owners additionally need to watch out for added expenses surrounding SUTA that can quickly add up and in extreme cases, destroy a business: the risk of costly fines, interest on untimely payments, the expenses associated with hiring a professional accountant, and more.
PEOs assist business owners by significantly decreasing the chances of facing unexpected expenditures surrounding unemployment.
Through the co-employment relationship the PEO assumes many employee-management responsibilities – one of them being payroll. With payroll experts (PEO professionals) managing clients’ payroll tax payments and reporting, business owners rest assured knowing their taxes are filed correctly and on time. Because employees are documented as employees of the PEO and not the client for tax filing purposes, the PEO is responsible for SUTA taxes, and it is in their mutual best interest to continually work to keep SUTA rates down.
Additionally, PEOs help clients win unemployment claims by keeping appropriate documentation and ensuring workplace compliance. Through frequent audits they can also help identify and protest erroneous charges or claims tied to SUTA.
Sick and tired of interfacing with the state unemployment agency? Trust us, we know that a few administrative hours here and there results in lost productivity and income – especially when SUTA rates change on an annual basis, requiring you to start from scratch and relearn the lay of the land. PEOs significantly decrease the amount of administrative function for the business owner.
If you’re interested in SUTA support solutions that won’t break the bank and will help further protect your workplace (and money), call 877-636-9525 or fill out an application today.
If you are currently shopping for a PEO, be sure to tune back in next week. PEO Advantage will be diving further into SUTA regulations and rates, detailing how they vary per state. We will also be explaining the importance of reviewing certain SUTA details before engaging in a new PEO partnership.