From the advent of AI to recent updates to payroll tax software, technology is rapidly transforming how businesses operate. As a large corporation, your ability to harness this technology can significantly impact your payroll tax efficiency. With all of the differences among federal, state, and local tax systems, this type of technology is integral for navigating a web of varying payroll tax requirements.

Learn more about how payroll tax management (PTM) tools can affect your company’s efficiency and profitability.

What Are Common Pitfalls with Traditional Payroll Tax Management?

When you run a large corporation, managing payroll taxes often involves some common pain points.

• Time Costs: Managing the wages, taxes, and withholdings of every employee can eat up many labor hours.
• Compliance Across Jurisdictions: International, federal, state, and local tax codes are constantly changing. Keeping up with these new rules can be challenging.
• Human Errors: Any employee-entered data can contain human errors, leading to potential penalties and costly mistakes.
• Limited Analytics: Traditional payroll systems have limited reporting and analytics features, leaving your team blind to the costs and benefits of major changes that impact payroll taxes.
• Employee Disputes: On an organizational level, workplaces can end up devoting significant resources to handling employee disputes, payroll issues, and questions.

Cloud-based platforms, advanced analytics, automated payroll tax calculations, and state-of-the-art technologies can alleviate these pain points and help you achieve more efficient payroll tax management. 

How Payroll Tax Management Technology Benefits Your Business

Rather than rely on outdated software programs or manual entry, your company needs to invest in the latest payroll tax management technology. Through this technology, your corporation can enjoy a few key benefits.

Seamless Multistate Functionality

Each state has unique payroll taxes, making multistate payroll tax functionality critical for organizations that operate across jurisdictions. For example, your company may have already encountered California’s Employment Training Tax (ETT) or the statewide transit tax in Oregon. Currently, nine U.S. states have no state-imposed income tax at all.

To expand into new areas, you must carefully navigate the payroll requirements of each state and local area. One employee may work in multiple states over the course of their tenure, and the right PTM system can track the withholding requirements and unemployment taxes for each state. 

Plus, the PTM system can automatically help your company comply with each area’s documentation and reporting rules. Each jurisdiction has its own tax deposit deadlines, making it especially important to use automated software for tracking deposit due dates.

Automated Calculations

Handling payroll tax filing manually can be a daunting task. With automated calculations, you can enjoy fewer mistakes, better labor efficiency, and faster calculations. Plus, automated systems are instantly updated as new tax compliance information comes out, so you don’t have to worry about running afoul of sudden changes in the law.

Real-Time Compliance Updates

Each time your company expands to a new state or territory, there are fresh regulations and tax codes to follow. By using a technologically advanced system for your payroll tax management, you can enjoy having automatic compliance and regulatory updates. Plus, you can easily look up all of your tax records and see how much each state and municipal tax regulation costs your company.

Convenient Self-Service Portals

Modern tax management software makes understanding and analyzing your payroll taxes exceptionally easy. For example, the Asure Tax Portal offers self-service features, so you can instantly access your historical and current-year data. In addition, you can check out your existing liabilities, deposit records, and the real-time status of your tax filing reports. These reports are created for each local, state, and federal jurisdiction you’re in, so you can enjoy greater visibility. 

Excellent Scalability

As your company grows, your payroll, and resulting payroll tax obligations, will increase as well. If you’re handling all of your regulatory compliance and tax calculations in-house, you’ll have to recruit, hire, and train new payroll workers each time you expand. By using software to replace labor hours, you can scale effortlessly and keep your costs down.

Accounting Integrations

To reduce data errors and achieve a higher level of efficiency, you need payroll tax software that is easily integrated into your accounting systems. In addition to reducing errors, this type of integration can also boost your productivity and lower your overall labor costs.

Instant Access to Tax Filings Across State, Federal, and Local Governments 

Through the online tax portal, you can instantly look at all of your state, federal, and local tax information. Besides ensuring that all of your tax filings were made on time, this also means your company can enjoy a better level of transparency.

Insightful Analytics

In order to make reliable decisions, you need high-quality analytics and reporting features. Payroll taxes can affect your organization’s decisions about where to open up new branches, how much to pay new hires, and whether you need to close down underperforming locations. More importantly, reporting features provide immediate visibility into your compliance record.

Accurately Track Employee Work Locations

Good payroll tax management programs will track employees across work locations in different cities and states. This feature ensures that you pay the correct income taxes, unemployment taxes, and withholding amounts. A well-designed PTM system will also track how long your remote, hybrid, and traveling workers are employed in each area. The number of working days allowed before state payroll taxes kick in varies from one state to another. For example, New York allows a traveling worker to be employed in the area for 14 days before local payroll taxes kick in. In Illinois, employers have up to 30 days before they have to start paying payroll taxes on the visiting worker.

Improved Record-Keeping Functions

Whether you’re worried about an audit or simply want to ensure easy access to your payroll tax records, good record keeping is important. If you fail to keep accurate records, it can lead to disputes with the IRS and state tax authorities. Thanks to digital PTM software, all of your records can be easily stored in one repository, ensuring instant access to information if there is a problem in the future.

Learn How to Harness New Technology to Boost Your Payroll Tax Efficiency

Through better technology, you can save on labor costs and be more efficient at handling your organization’s payroll taxes. More importantly, you can ensure your company’s legal compliance through immediate updates and automated payroll calculations. 

Learn more about incorporating payroll tax management software at your business by reaching out to Asure’s team of payroll tax experts today.