Managing payroll and taxes for employees across multiple states can be a complex and challenging task. As a small business owner, it’s important to understand your responsibilities and make sure you’re compliant in each state where your employees work. In this post, we’ll go over the expectations for businesses with employees in multiple states, offer tips for self-managing multi-state payroll and taxes, and discuss the benefits of working with a professional accountant.
Expectations for Businesses with Employees in Multiple States:
Small businesses with employees in more than one state should:
- Accurately pay employees on time
- Properly categorize employees in all relevant states
- Withhold payroll taxes for federal and all necessary state, county, and local jurisdictions
- Make timely payments to all taxing agencies
- Provide employees with transparency into the payroll process and details
Tips for Self-Managing Multi-State Payroll & Taxes:
If you choose to self-manage your multi-state payroll and taxes, here are some tips that can help:
- Identify all states where your employees work
- Create a contact list of all taxing agencies
- Research the individual laws for wages and taxes in each state
- Research county and local tax requirements
- Create a master schedule to keep track of deadlines
- Identify states with reciprocity agreements
- Automate payroll tax tracking to stay organized
- Reconcile your accounts regularly
Benefits of Working with Professional Accountants for Multi-State Payroll & Taxes:
While it is possible to manage multi-state payroll and taxes on your own, there are many benefits to working with a professional accountant for your multi-state payroll and taxes, including:
Access to Specialized Knowledge:
Professional accountants have extensive training and experience in the area of payroll and taxes, so they’re able to provide you with expert advice and guidance that you may not be able to find elsewhere.
Use of Established Systems and Processes:
Many professional accountants have established systems and processes in place for managing multi-state payroll and taxes, which can save you time and effort compared to doing it yourself.
Continuing Professional Education and Regulatory Changes:
Professional accountants are typically required to participate in continuing professional education to keep up-to-date with changing regulations and best practices, so you can feel confident that you’re working with someone who is knowledgeable. Minnesota CPAs are required to complete 120 hours over 3 years, with a minimum of 20 per year.
By working with a professional accountant, you’ll be able to focus on growing your business while they take care of the complex and time-consuming aspects of multi-state payroll and tax management.
Working with Haworth & Company, Ltd.:
At Haworth & Company, Ltd., our EZ Payroll team is dedicated to helping small businesses navigate the complexities of multi-state payroll and taxes. With our expertise and attention to detail, you can trust us to keep your business compliant and organized. Contact us to learn more about our services and how we can support your small business with your multi-state payroll and taxes.