Payroll is challenging enough without having to deal with multi-state payroll tax withholdings. Universities often encounter this issue when staff and faculty live and work in different states, making new tax obligations pop up.
It's entirely possible to do multi-state payroll and tax withholding yourself. But it won't be cost-effective because you'll spend too much time each month calculating, withholding, and double-checking your work. A better solution for universities is outsourcing multi-state payroll to a Professional Employer Organization (PEO).
A Professional Employer Organization gives you the ability to refocus your time and attention. But only a PEO can offer you comprehensive HR outsourcing solutions that include the ability to do multi-state payroll for your staff and faculty.
When you partner with a PEO, you enter into a co-employment relationship. The PEO becomes the employer of record for your staff and faculty members so the PEO can handle all payroll, tax remittance, and state compliance for your team. You retain sole and exclusive control over your workforce, their duties, and the university's day-to-day operations.
A co-employment relationship offers you access to significant cost savings in employee benefits, workers' comp, and unemployment insurance. Not only does a PEO take the stress and burden off your shoulders, it creates a better work environment for your staff and faculty, potentially increasing your retention rate and your ability to attract and retain top staff.
A PEO offers you so much more than just multi-state payroll. While doing your multi-state payroll is an immense relief, a PEO can provide you with comprehensive HR services and support, creating a better organization and better work environment for your staff and faculty.
Because of the co-employment relationship, a PEO can handle all of your payroll needs. Your PEO staffs payroll experts who can ensure accurate payroll processing every single time. They also take on some liability as the employer of record. If a mistake is made, the PEO would be responsible for making it right.
National and single state payroll tax is hard enough. When you have staff and faculty in multiple states, you'll need to address numerous state withholdings accurately or face fines. With a PEO, their payroll experts ensure that, from the first paycheck, staff and faculty in new states have an accurate paycheck, and tax withholdings are remitted in the right amounts to the proper authorities.
Offering benefits is one of the best ways to keep staff and faculty around. But for many organizations, it's a significant challenge to administer. Your PEO will staff benefits experts who administer your plan for you. They ensure accurate benefits administration and compliance by taking ownership of your entire benefits plan.
Organizations also find it challenging to afford quality benefits. With a PEO, you gain access to their master benefits plan, negotiated at scale by experts. This gives you access to Fortune 500 benefits without breaking the bank.
Workers' compensation insurance coverage is required for your organization. Like benefits, however, it can also be extremely expensive, especially if you've had multiple worksite injuries. With a PEO, you can join their workers' comp plan on a pay-as-you-go basis, avoiding the initial fee and spreading your costs out over the year.
That's not the only way a PEO can save your university money on workers' comp. They'll also save you money by potentially reducing your premiums over what you could obtain on your own. When you join a PEO, you access their experience modifier, or e-mod, rate. If you've had numerous claims against your workers' comp, this could be a substantial cost saving.
When a PEO becomes the employer of record for your staff and faculty, they deal with unemployment. They handle the payments to each state and any claims from former staff and faculty. Not only does this save you time, but it can also save you money because the PEO will work diligently to contest any invalid unemployment claims.
Employment laws vary from state to state. When you hire new staff and faculty in a new state, you need to learn about the applicable laws and regulations. However, a PEO staffs HR experts whose job is to know and understand the different state employment laws and take proactive steps to keep your organization compliant.
When you do everything in-house, you may have multiple pieces of software to hold and access different information. With a PEO, you get access to their HR software, giving both you and your staff access to pertinent information all in one place.
Best-in-class PEOs staff experts in multi-state payroll, tax remittance, and employment law compliance. When your university hires a new staff or faculty member in a new state, the PEO will help you find affordable workers' compensation and employee benefits. They'll ensure that you meet the minimum requirements for the state and help you administer each plan, ensuring accuracy and compliance.
Thanks to co-employment, new staff and faculty members are paid using the PEO's state tax identification number, so you don't need to take the time and cost to register for a new state tax identification number. Ultimately, a PEO makes your transition to hiring in a new state simple and cost-effective.