Why Contractors Should Consider Partnering With A PEO – Part 5: Payroll & Tax Administration
We all know by law you must pay your employees correctly, withhold the proper amount of taxes, garnishments, etc., and most importantly, pay them on time (to ensure happy employees!) Recently, I spoke with a CPA firm who had over 300 employees and also outsources their payroll. When I asked them why they choose to outsource payroll, given the fact that they had close to one hundred certified public accounts and scores of paraprofessionals on staff who handle payroll and tax compliance for their clients, their answer was simple. “Doing weekly payroll is not a revenue generator for our firm”. Their philosophy is that they would rather have their employees work on things that add to the bottom line rather than a transactional activity like weekly payroll. Is your construction company this laser focused on the activities that actually make you profitable? PEOs allow owners to be focused on bottom-line initiatives by handling your weekly payroll administration and tax compliance, filing your 940s & 941s, and also handling your W-2s at the end of the year. Certified payrolls and Davis-Bacon Act compliance are two other areas where PEOs assist construction companies.
About M2 PEO Solutions
M2 PEO Solutions is an independent consulting firm that helps construction and blue collar companies find PEOs (“Professional Employer Organizations”) who have expertise in the labor intensive industries. We help solve employment problems for business owners in the areas of Payroll, Workers’ Comp, HR, Safety/Risk Management, and Benefits Administration.