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Workers’ Comp for the Gig Economy: What Freelancers and Contractors Need to Know

Workers’ Comp for the Gig Economy

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 Growing Gig Economy and Workplace Risks

 

The gig economy has been on the rise in recent years, offering workers the flexibility to choose which jobs they want to take, when they want to work, and where they want to be located. While freelance or contract-based work can be a great option for many people, there are still workplace risks to keep in mind.

 

While there are many different types of jobs for freelancers and contracted workers, some common industries include high-risk jobs like construction and manufacturing. If you’re a gig worker, understanding workers’ comp solutions and how to remain covered is crucial.

 

Understanding Workers’ Comp for Freelancers and Contractors

 

Whether you’re a full-time employee or contracted worker, having workers’ comp coverage is imperative. Workers’ comp coverage helps protect workers financially in the event of an accident on the job. It can also help protect the company if someone gets injured onsite.

 

While mid-sized and large organizations typically have the ability to offer benefits packages to their employees, that may not be the case for small businesses or companies that hire independent contractors. Insurance companies typically require a large lump-sum premium each year. Small businesses, however, may not be able to afford that. Additionally, freelancers or contractors are hired on a project-by-project basis and won’t often need an entire year of coverage.

 

How PEOs Offer Workers’ Comp Solutions for Gig Workers

 

Professional employer organizations (PEOs) specialize in handling the administrative tasks for businesses—from payroll and workers’ compensation to safety programs and risk management. Let’s take a look at how they offer workers’ compensation solutions for gig workers.

 

1. Pay-As-You-Go Programs

 

Because freelancers typically work on a project-by-project basis, independent contractor protection can be challenging to navigate. Traditional insurance generally requires a lump-sum premium payment, and the type of coverage and duration of protection are usually standard across the board.

 

PEOs offer pay-as-you-go workers’ compensation programs that work seamlessly for freelancers and independent contractors. Pay-as-you-go solutions give workers the flexibility to have the amount of coverage they need, when they need it.

 

2. Safety Training Programs

 

Workplace injury can occur in any setting and in any industry. Creating a safe work environment by training each worker properly can make a massive difference on the volume of workers’ compensation claims.

 

PEOs often implement safety training programs for the workforce to help ensure everyone is up to date with current policies and protocol. This can be particularly helpful for gig workers who aren’t a permanent part of the team, and who may transition often between companies. Independent contractors will have their own employee dashboards where they can watch safety videos and educational content.

 

3. Automated Payroll

 

Automated payroll is especially beneficial for gig workers who may work varying hours or shifts each week. Workers will have access to an employee dashboard where they can track their time. Employers can utilize automated payroll systems to ensure each worker gets paid the correct amount and on time, without fail.

 

4. High-Risk Work Protection

 

In some cases, insurance companies don’t offer protection for high-risk workers. Great PEOs like PEOPayGo provide coverage no matter what your job is as an independent contractor or what industry you’re in.

 

5. Unique Coverage to Meet Your Needs

 

Each independent contractor and freelancer has their own specific needs when it comes to the type of coverage they need and the duration of time they need it. PEOs specialize in offering unique coverage that can meet the needs and timeline of each individual worker.

 

Additionally, PEO’s coverage options are typically reasonably priced. They’re able to group each of their clients in together in order to get the best pricing and packages possible from insurance companies.

 

Protecting Yourself with PEO-Backed Coverage

 

As a freelancer, independent contractor, or small business owner, you likely have a lot on your plate as it is. Workers’ compensation coverage should be easily accessible and hassle-free no matter what you do for work. When you work with a reputable PEO, gig workers are supported through pay-as-you-go workers’ comp programs, safety education, accurate and timely payroll, high-risk protection, and unique coverage to meet their specific needs.

 

If you’re a gig worker or small business owner, PEOPayGo is here to help. Our expert PEO solutions make it easy to meet your workers’ compensation requirements while staying focused on growing your business.

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

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