Accurate Payroll, Happier Clients: How PEOs Make Paydays Simple

Quick look: Every September, National Payroll Week celebrates the payroll professionals who work tirelessly to keep businesses running and employees paid accurately and on time. While managing payroll can be complex, partnering with a professional employer organization (PEO) helps simplify the process.

Paying employees may look simple on the surface, but behind every paycheck is a complex process requiring planning, precision, and the expertise of HR and payroll professionals.

National Payroll Week (NPW) honors that dedication and achievements every first week of September. Coinciding with Labor Day, NPW also serves as a reminder that the payroll cycle affects more than companies and their staff.

As the official National Payroll Week website explains, “The money that payroll professionals collect from employees’ paychecks through the payroll withholding system is vital to the funding of important government programs that keep America working smoothly, such as Medicare, the building of federal highways, social security, the U.S. military, and much more.”

Accurate payroll management keeps employees paid, but it’s also crucial for companies to avoid penalties. And, as with other aspects of HR, there are many moving parts to processing payroll. Here’s how a professional employer organization (PEO) can keep clients’ employee wage payments on track and handle any potential challenges.

9 key areas of payroll support from a PEO

For most employees, payroll simply means money showing up in their bank account on payday.  But behind the scenes, payroll professionals know just how many steps it takes to make each transaction accurate and compliant.

A PEO like ExtensisHR streamlines this process by delivering end-to-end HR, employee benefits, and payroll solutions tailored for small and medium-sized businesses (SMBs). Here’s a look at nine areas where broker clients can expect a PEO to provide payroll expertise and administration:

1. Centralized payroll management

ExtensisHR delivers a total payroll solution complete with access to a dedicated payroll management team to ensure employees receive timely wage payments.

2. Federal, state, and local payroll laws

With ongoing changes to payroll laws and regulations, such as updates to minimum wage, allocations for part-time vs. full-time employees, and tax law amendments, a PEO’s insight and expertise can help companies maintain compliance and avoid missteps and penalties.

3. ACA compliance

The Affordable Care Act (ACA) includes several payroll-related requirements, including specific provisions for small businesses with full-time employees. To ensure accurate reporting and calculations for health coverage, a PEO aligns company payroll processes with ACA mandates.

4. Tax compliance and filing

When SMBs employ remote workers, staying on top of tax compliance and filing can get tricky. A PEO’s payroll offering includes managing federal, multi-state, and local tax withholdings, filings, payments, and registrations to keep businesses compliant.

5. Employee benefit deductions

As with ACA compliance, a PEO takes on the responsibility of administering payroll deductions for personalized health coverage, retirement plans, and other employee benefits, seamlessly integrating them into the payroll system.

6. Time and attendance tracking

PEOs provide access to affordable systems for tracking employee hours to monitor regular and overtime pay. ExtensisHR’s proprietary HRCloud automates SMBs’ payroll with hours and paid time off (PTO), allowing for quick and easy adjustments when needed.

7. Direct deposit and electronic payments

Direct deposit and other electronic payment options for payroll are available through a PEO, along with assistance in setting up new employees with their preferred methods so they receive their pay securely and on time.

8. Year-end reporting

With HRCloud, SMB clients have access to many standard reports with additional custom payroll reports, including a payroll register, allocation report, and workers’ compensation report, and more, along with the standard W-2, 1099, and other necessary tax form preparation.

9. Employee self-service portals

ExtensisHR offers SMB clients and their employees 24/7 access to employee benefits, PTO requests, pay stubs, and more through its Work Anywhere® app for mobile-friendly convenience and transparency.

Payroll and beyond: ExtensisHR’s added value

Though efficient tools and features create a more seamless payroll experience, it’s the people who make it effective. ExtensisHR stands apart from other PEOs with our:

• Reliable customer support: Our customers receive dedicated access to Payroll Specialists to answer questions as they arise. And for worksite employees, our Employee Solution Center quickly addresses payroll matters like updating their W-4, accessing their W-2, or simply better understanding their pay stub.
• Customer-centric model: While many big-box PEOs follow a one-size-fits-all model, ExtensisHR focuses on providing tailored support to clients to align payroll and other HR services with specific company goals.
• CPEO credentialing: ExtensisHR is among the 1% of PEOs with a trifecta of industry credentials, including being named one of the first Certified PEOs by the IRS. CPEOs meet the highest regulatory standards set by the U.S. government and the PEO industry’s financial assurance program.
• All-inclusive HR services: As part of our complete PEO solution, ExtensisHR offers HR and benefit administration, risk and compliance services, complimentary recruiting, and more, all managed through one point of contact.

Helping brokers and their clients grow

National Payroll Week not only recognizes the complexities of payroll management, it also provides an opportunity to help employees better understand their paychecks and give them greater insight into their earnings.

A PEO partner manages many aspects of payroll and more, allowing SMB leaders to focus on strategically running and expanding their businesses. By partnering with ExtensisHR, brokers strengthen their value proposition, delivering streamlined HR, payroll, and benefits support to clients throughout the year.

Discover how ExtensisHR can give you a competitive edge. Connect with our experts today to discuss a partnership.