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Small Business Owner: What You Need To Know About Workers’ Comp

The Growing Challenge of Multi-State Payroll

Business owners, CFOs, and HR professionals know how complex the payroll process can be. When your company hires employees that live across multiple states, however, it becomes even more challenging.

 

Varying tax regulations and location-specific wage laws make it difficult to remain compliant. The rise of remote work means these complexities are becoming even more prevalent, ultimately costing companies time and money.

 

The administrative burden of multi-state payroll can lead to costly errors—particularly for small businesses. Professional employer organizations (PEOs) step in to alleviate some of that pressure by handling administrative tasks like payroll management. This means growing companies can stay focused solely on running their business.

 

Let’s take a closer look at multi-state payroll compliance, why traditional payroll may not be the right choice for your company, and how PEOs help simplify the payroll process.

 

Understanding Payroll Compliance Across State Borders

If you’re a small business owner, hiring remote workers means having the ability to access a larger pool of talent beyond your specific area. This can be incredibly beneficial for your business, but it also comes with challenges.

 

One of the biggest challenges companies should consider when hiring talent across state borders is remaining compliant with rules and regulations regarding payroll. Not only do these laws evolve constantly, but they also tend to vary from state-to-state. If your company falls out of compliance, you could be faced with hefty fines and penalties.

 

When hiring workers across multiple states, it’s important to keep in mind that state income tax rates, unemployment insurance requirements, wage and hour laws, and benefits mandates will vary depending on where your new employees are located. Keeping up with those regulations can be especially difficult for smaller businesses or companies without a human resources team.

 

Why Traditional Payroll Systems Fall Short

Traditional payroll systems typically handle one-size-fits-all scenarios. While they may process paychecks efficiently, they may not take multi-state payroll compliance into account.

 

In many cases, generalized payroll processing can lead to miscalculated tax withholdings, late or inaccurate state filings, or noncompliance with state wage laws.

 

How PEOPayGo Makes Multi-State Payroll Easy and Accurate

From streamlining payroll and ensuring compliance to flexible pay-as-you-go programs and expert support at your fingertips, PEOPayGo makes multi-state payroll easy and accurate.

 

1. Payroll Compliance

PEOPayGo specializes in understanding and keeping up with state and federal rules and regulations when it comes to payroll. No matter where in the United States your workers are located, PEOPayGo ensures that your business will remain in compliance with those laws.

 

2. Streamlined Payroll Processes

Beyond remaining compliant with state and federal regulations, a streamlined payroll process is essential to keep employees happy and your company thriving. PEOPayGo’s platform simplifies the entire process, from onboarding new employees and time tracking to tax filings and benefits management. Automating your payroll processes with the help of PEOPayGo also ensures that it’s done accurately and on time.

 

3. Expert Support

The team of experts at PEOPayGo is always available to help with what you need—whether you’re unsure of how to handle an employee moving to another state or you’re trying to understand varying wage laws. When you partner with PEOPayGo, you’ll receive the support you need as a small or medium-sized business.

 

Simplify Payroll with PEOPayGo’s Multi-State Expertise

Managing payroll across multiple states can be complicated, and as a small business owner, you likely have a lot on your plate already. It can be difficult to keep track of varying wage laws by state, especially when rules and regulations are constantly changing.

 

When you work with PEOPayGo, you can rest assured that your business will remain compliant with state and federal regulations when it comes to payroll. Not only will you receive compliance support, but you’ll have streamlined payroll processes to help your organization simplify and thrive.

 

If you’re a business owner or HR manager with multi-state or remote employees, reach out to PEOPayGo today to get the payroll support you need.

 

Contact us today to get the coverage and support you need!

The process of starting a small business involves a lot of details.

 

 

Overlooking insurance may be tempting, but protecting your investment will keep it safe. The answer to the question, “Do I need Workers’ Compensation Insurance?” is “yes”, by law. 

 

 

Workers’ Compensation Insurance provides you with peace of mind. As a responsible business owner, you know you are meeting state requirements, and your employees are protected in case they get sick or injured at work.

 

 

Let’s look at the details.

What is Workers Comp Insurance?

Workers Compensation Insurance helps small business employers protect their employees and businesses from the costs associated with work-related accidents, injuries, and illnesses. 

 

 

If an employee is injured on the job, if your company has workers’ compensation coverage, they will be able to file a claim. Your workers’ compensation policy will compensate your injured employees for their medical expenses, necessary rehabilitation, and lost wages while they are recuperating if the claim is approved. 

 

 

If you want to make sure that you and your employees have coverage in case of work-related injuries, you will need workers compensation insurance.

Workers Comp Insurance For Small Business

In most states across the country, workers compensation insurance isn’t optional. While state laws vary, small businesses typically need one in place as soon as they hire their first employee.

 

 

In addition to covering medical expenses, the coverage also protects against lawsuits stemming from workplace injuries. Your business would be responsible for any medical bills and legal fees if you don’t carry workers’ compensation. Most states levy costly penalties for noncompliance.

 

 

These are 3 reasons why you should get Workers’ Compensation Insurance for your small business:

 

 

# 1: Workers’ compensation is required in most states. 

 

# 2: The insurance covers medical expenses and partial lost wages caused by work injuries. 

 

# 3: In addition, most policies will cover employee lawsuits related to work-related injuries.

 

Workers compensation coverage does not require an injury to be caused by an accident. As defined by the state, workers’ compensation insurance also covers illnesses related to employment, for example, a lung disease that is scientifically linked to exposure to chemicals used in certain jobs.
 
 
A great number of employees also receive workers’ compensation benefits as a result of an injury sustained from prolonged overuse or misuse, such as chronic back pain

Why Workers Comp Is Important For Small Businesses?

An injury at the workplace could have devastating financial consequences for your business. The owner of a small business may not be able to afford to pay medical expenses out of pocket, such as treatment for carpal tunnel syndrome.

 

 

If you don’t have workers’ compensation coverage, your business, and employees are both in a difficult position.

 

 

The best advice for a business owner is in order to protect your business and employees, you should get workers’ compensation insurance in case any of your employees get injured at work. Otherwise, if you don’t get your workers’ comp program, you could get sued by the injured employee and could lose a lot of money out of pocket.

PEOPAYGO Is Here To Help You!

As a Professional Employee Organization (PEO), P.E.O.PayGo can help you get workers comp, bundle payroll, HR, and perform all the headache functions of a small business, all while saving you time and money.

 

Let our Instaquote do all the work, we don’t need much information and it takes 2 minutes. Our software does all the work for you. 

 

Get Ready, Set, and Covered Now!

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