As an employer, you are responsible for paying state unemployment taxes, or SUTA, in the United States. However, if you feel like you do not have the time to deal with taxes, you should not ignore them. You can incur fines and other penalties if you do not pay your taxes on time.
This is where a PEO partnership can be a big help to your business. A professional employer organization (PEO) can help you reduce risk by handling your taxes for you, on time. Call NetPEO today at (678) 376-1212. We will match you to a PEO that can handle any tax issue you need help with.
The SUTA tax rate is different for every state and depends on the state in which you do business. If you do business in several states, you will probably have to pay a different SUTA for each state.
As the employer, you pay SUTA, not your employees. This works by the government calculating a tax amount for each employee based on how much you pay them. They also figure in your company’s unemployment rate.
The amount of tax you pay per employee usually caps at a certain amount. This is the cutoff amount, and it differs by state. Each state also has its own minimum and maximum tax rates. You must pay SUTA quarterly with either the 940 or 941 form. Many states also require companies to submit this information on media. You can use a CD or thumb drive to send it in.
This can be too complicated or require too much time to do on your own and by the deadline. A PEO or CPEO can help your business follow the law with little interruption to your daily operations.
A certified professional employer organization (CPEO) can be a big help to your business if you are struggling to keep up with your finances. A CPEO is just like a PEO. The only difference is that a CPEO has certification from the IRS to help you with some of the more complicated financial matters.
How PEOs Handle SUTA
When you join forces with a PEO, you can leave all your state unemployment tax concerns in their hands. The PEO will then calculate and pay your SUTA for you. The government allows this because they classify a PEO as an employer of record. This gives a PEO the authority to handle the SUTA and other financial matters for your business.
When you leave your worries to a PEO, you never again have to stress over reporting SUTA incorrectly. You also don’t have to take time away from your business to handle your SUTA. This saves you the concern that you could take all that time to do your taxes, and then do them wrong and suffer a penalty anyway. That’s not the case with a PEO helping you out.
A PEO is especially helpful to companies that have separate branches of their business in different states. After all, trying to calculate the SUTA for multiple states can become incredibly frustrating and confusing. There is no need to seek a different provider for each state, as a PEO company in Alabama, for example, can help you cover all branches of your company.
It all depends on the PEO you choose, however, because some PEOs will do the calculating and reporting for you but leave the experience rate up to you. Your experience rate is like a score you receive based on how many of your employees go on unemployment. In the simplest terms, the less your employees have experienced unemployment, the lower your tax rate will be for your unemployment insurance.
The PEO you ultimately choose can handle just the SUTA for you, or it can also assist with your experience rating. It all depends on how in-depth you want to go. A PEO can also help you retain employees, which ultimately benefits you (at the very least, in your experience rating).
NetPEO Can Match You to a PEO That Can Save Your Company
Some business owners will put off taxes until the last minute. Then, business increases, they get busy, and they forget. Not paying your taxes in a timely fashion can earn you fines at best – and imprisonment at worst.
Don’t fall behind in your taxes when a PEO can help you. Not only can a PEO pay your taxes for you, but they can also help you improve your experience rating so you can enjoy lower taxes in the future. They can also offer you improved benefits that will encourage your employees to stay with your company. This benefits you in a number of ways, from saving money on taxes and training to saving profits that would otherwise be lost in training someone new.
Call NetPEO today at (678) 376-1212, and we will analyze your business for free to get you the best possible PEO for your business. We discuss your business’ needs with you to determine exactly what you need, and then we help you get it. Call NetPEO today and experience a stress-free business environment like one you’ve never enjoyed before!