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“I Have No Employees”, Do I Need 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!

As a small business owner, you consider your work to be pretty risk-free. Even so, we know that sometimes life throws us curveballs, and mistakes will still happen.

 

Imagine you slip on some ice as you go to visit a client in the middle of winter and injure your back. Maybe a heavy piece of equipment breaks your hand. 

 

There are a lot of situations when workers’ compensation might be needed (or desired). 

Work-related injuries are usually excluded from health insurance policies. Having workers’ compensation coverage helps prevent a major financial burden when someone is injured at work.

What Does A Workers' Compensation Policy Cover?

Several types of work-related injuries are covered by workers’ compensation, according to Workplace Fairness. The list includes:

To understand what workers’ compensation does not cover, it helps to look at what a policy does cover. Among these types of injuries are those caused by self-inflicted injury, accidents during intoxication, accidents while an employee wasn’t on the job, and injuries caused when a worker committed a serious crime or violated a company policy.

Who Is Required To Carry Workers' Comp Insurance?

States mandate and regulate workers’ compensation coverage. Workers’ comp laws by state are outlined by the National Federation of Independent Business. 

 

Remember, though, that most states require employers with full- or part-time employees to have workers’ comp insurance. While some states require employers to carry workers’ comp coverage if they have at least one employee, others have a minimum of three. You don’t have to maintain your workers’ comp insurance if you lay off all your employees, however, you will save money if you hire them back within 30 days.

Are You Required To Have Workers' Comp If You're Self-Employed?

Sole proprietors and independent contractors are not included in the list above. Then you may be wondering, “Do I need workers’ comp insurance if I don’t have any employees?”

It’s not required by law to carry workers’ compensation insurance for businesses that don’t have employees. 

Despite this, you should still consider investing in workers’ compensation insurance, especially if any of the following apply to you:

 

You work in an industry with a high injury rate

In some industries, such as construction, injuries are common, so you should seriously consider getting workers’ compensation for yourself. 

You wouldn’t want to lose out on your income during recovery not just because of hefty medical bills, but also because of medical bills. 

 

Insurance coverage is requested or required by your client

Clients usually include a clause in their contracts that requires the contractors they work with to have insurance. 

 

General liability policies are generally sufficient. However, especially in high-risk industries, you might be asked to carry workers’ compensation insurance. 

So, how do they differ? Workers’ compensation protects your body, while general liability protects your business. 

 

If during repairing a roof, you caused property damage to a customer, that would be covered under your general liability policy. On the other hand, if you slipped off the roof and broke your leg, workers’ compensation would cover it. 

 

You have subcontractors

Another rule varies from state to state. Depending on your state, subcontractors could be considered employees, and a workers’ compensation policy might be required.

 

Additionally, you must ensure that employees are not misclassified as independent contractors. As a small business owner, you may face fines and penalties as a result.

 

Contractors are generally considered self-employed. That means you cannot determine when, how, or what gets done. 

When You Are Self-Employed, How Do You Get Workers' Comp?

Workers’ compensation insurance sounds like a good idea to you? You’re probably wondering: how do you get coverage?

 

Because insurance companies are not particularly profit-driven, it isn’t always as simple as you’d think. 

Ask your broker about coverage if you’re considering buying a workers’ compensation policy. You will be able to explore your options and make the right business decision with their assistance. No insurance agent? The Independent Insurance Agents and Brokers of America, Inc. offers a directory you can search or ask other business owners for recommendations. 

 

Additionally, you can check if your state has a workers’ compensation fund. Government-funded insurance provides coverage for businesses that cannot find workers’ compensation policies on the private market. 

Prevention Is The Key To Avoiding Accidents​

Workplace safety programs can help you rein in the direct and indirect costs of workers’ comp claims. You can save money by preventing accidents before they happen, improving employee morale, and lowering costs of insurance by preventing injuries before they happen. Be proactive if you don’t yet have a plan.                                                                                                                       

Businesses and self-employed contractors might want to consider getting a policy that protects their business if they get hurt at work instead of skipping workers’ compensation protection. Get in touch with an insurer today, PEOPayGo is a great option.

 

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

 

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