Archive for the ‘Unemployment Taxes’ Category

Construction Companies: The Best Ways to Save with a PEO – Why you NEED a PEO

February 25th, 2015

PEO for Construction Companies Do you own your own construction company?  Perhaps you are looking to expand to accommodate business growth?  Are you looking to get yourself out of the office and onto the jobsites?  The construction industry is one that has a lot of regulatory red tape.  From human resources, to INS requirements to workman’s compensation, the nature of the business is not only highly administrative but requires support from people who are well versed across industry regulations.  Depending on the size of your company, having someone on full time to support the human resources and legal functions can be extremely expensive.    So how do you run your business, stay compliant and increase your bottom line?

You outsource.  Professional Employer Organizations have long been supporting the construction industry by taking on functions like payroll, human resources administration, OSHA compliance, health insurance and workman’s compensation.  In addition to those areas, PEOs also specialize in I-9 compliance – focusing on immigration and INS work requirements. Should there be violations, your PEO will address them and identify the steps required to solve the issues.

In addition to I-9 compliance, PEOs are also there to provide payroll support – from cutting checks to auditing pay methods to ensure compliance with the Fair Labor Act, PEOs have you covered.  Payroll administration also includes W -2 and W-3 summaries, maintaining records, handling withholding taxes, filing tax reports and monitoring tax laws.

Another area that can be a challenge for construction companies to handle is benefits administration.  By engaging a PEO, you can take this off your plate.  With the recent implementation of the ACA, benefits and insurance are more complex than ever.  A PEO will not only ensure that you are compliant but also will address any items like benefits assistance for low wage employees.

Workers Compensation.  The phrase generally sends shudders down the spine of any construction business owner.  Why?  It’s expensive, complicated and easily manipulated.  By bringing on a PEO to manage this area of your business, you can be assured that risk will be properly assessed, claims will be handled, audited, monitored and analyzed.   PEOs can also help implement drug free workplace policies and OSHA compliance training.

You must be thinking – how can a PEO do all of this and save me money?  PEOs are experts in our field – we know how to deliver the best services at the best prices for our customers. Most save on average 25% by outsourcing.  Interested in hearing how we can help you get back to focusing on your businesses, your jobs and your bottom line?  Contact us today for a consult!


Can Part-Time Workers Collect Unemployment?

October 15th, 2013

Can Part Time Workers Collect UnemploymentUnemployment … every business owner’s favorite topic….

Not quite! Unemployment, taxes, claims, and everything else that revolves around the topic is quite complex.

Most businesses with employees pay state unemployment taxes. Each business’s particular rate is affected by the stability of the business’s employment record. A more stable employment record almost always results in a reduced tax rate over time.

However, if unemployment claims are authorized or repeatedly filed against you, your rates could go up. Additionally, claims result in lost time and money due to having to provide timely, complete, and accurate information at the time of the claim. No wonder we want to avoid them!

So, who can actually file for unemployment? Are these benefits offered to full-time employees only? What about part-time employees? Can they collect unemployment as well?

In short, yes.  Your state’s department of labor will evaluate their eligibility based on past wages (most often the past 18 months). If the employee made enough money during the necessary timeframe, then it does not matter if they were working part-time or full-time.

In fact, those that have been demoted from full-time to part-time work can actually file a loss-of-work claim and, if authorized, receive partial payments.

What can you do to limit your chances of facing unexpected expenditures surrounding unemployment? First, document, document, document! If an unemployment claim is filed, you will be given the chance as the business owner to dispute the claim. If you can prove that the employee left voluntarily or transitioned from full-time to part-time by choice, the claim may be denied.

Second, if you work with a PEO or are going to be in the near future, you’re already in a pretty good position. PEOs assist business owners by significantly decreasing risk and liability. Through the co-employment relationship the PEO assumes many employee management responsibilities. They help clients win unemployment claims by keeping appropriate documentation and also help to ensure workplace compliance. Through frequent audits they can also help identify and protest erroneous charges or claims tied to state unemployment tax (SUTA).

Because employees are documented as employees of the PEO and not the client for tax filing purposes in a co-employment relationship, the PEO is responsible for unemployment taxes.  It is in everyone’s best interest to continually work to keep rates (and claims) to a minimum.

If you’re interested in unemployment claims support or are looking for employee management solutions to help further protect your workplace (and money), call 877-636-9525 or contact us online.

Missed the Jan 1 Deadline? PEO Contracts CAN Begin Feb 1!

January 4th, 2013

You may have just missed the boat for a January 1 PEO contract, but contrary to common misapprehensions, you CAN easily begin a new PEO contract on February 1 versus waiting until January of next year.

Here are some common reasons for February 1 apprehension that we hear at PEO Advantage:

“My State Unemployment Tax (SUTA) and Federal Unemployment Tax periods restarted on January 1”

“I have already made January SUTA contributions and don’t want to be double taxed.” 

SUTA liability is different based on what state your business operates in, or more specifically, what state(s) your business has employees in. In some states where employers are taxed on just the first $7000 or $8000 in wages per employee like California and Florida, you very well may have already contributed to the state required maximum level.

But did you know that PEOs may be able to offer credits for taxes already paid? If you were interested in engaging a PEO just a few short months ago, why wait until next year to reap the many benefits? PEO Advantage clients save up to 25% a year on custom-fit HR solutions and there are 11 months left in 2013 to take advantage of this!

PEO Advantage manages the entire PEO selection process of securing quotes, making sure your requirements are crystal clear, and making sure you’re getting the best possible pricing.

Our team can negotiate credits on your behalf so that your options are still attractive, even if you’ve already made January 2013 tax contributions.

PEOs: The Importance of Reviewing SUTA Rates First

December 2nd, 2012

Last week we provided business owners with a brief introduction to SUTA; this week we are reviewing the importance of understanding and reviewing the State Unemployment Tax Authority regulations and rates BEFORE engaging in a new PEO relationship.

SUTA tax is required in every state and rates are updated annually. Each state mandates its own SUTA regulations, which involves determining the amount of wages subject to SUTA tax and what the minimum and maximum rates are.  Businesses operating within multiple states are required to pay SUTA taxes in each state where they have employees.

For businesses engaging in the PEO relationship, PEO tax laws also vary per state.  Rates are calculated based on actual wages paid to the employees, and the unemployment rate of the company. Although PEOs are considered employers of record with the state through the co-employment relationship, in some states, the government mandates that even under the co-employment relationship, the rate must be based on the client’s rate (not the PEOs). In other states,
clients engaged in a PEO relationship must pay the PEO’s rate, regardless of whether or not it is higher than the client’s existing rate. And, some states
permit you to choose which rate you would like to take advantage of, reducing your overall tax liability by selecting the best option.

Why is this important?

When shopping for a PEO, you may not have time to conduct all of this research (This involves reviewing the PEO’s advantages, the pricing on various HR services, the state laws surrounding the PEO relationship/SUTA liability in each state you have employees and the PEO’s existing SUTA rates. Then, you’ll have to compare all of that information against what an alternative PEO’s options are.)

How is SUTA calculated? Who is responsible for paying SUTA? Does the PEO present an opportunity for savings?  Selecting the RIGHT PEO for your business requires industry knowledge and adequate time for interviewing all the candidates. Not taking the appropriate amount of time to review a PEO’s details as specific as SUTA compliance could result in losing a substantial amount of potential savings each year.

At PEO Advantage, we are real business partners, focused on selecting the RIGHT PEO for you, though our systematic yet personal approach.  From the
in-depth evaluation and independent references to translating complex PEO quotes into easy-to-read comparisons complete with cost and savings details, we
manage it all. Plus, we monitor results and conduct annual reviews so your HR solutions deliver value year-after-year (even as SUTA rates and regulations

Additional Resources: SUTA Tax Rates by State

Somebody Help Me With SUTA!

November 19th, 2012

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.