Managing payroll taxes can pose significant burdens for your business. Filing and remitting taxes can be challenging enough, let alone the myriad of requirements that typically differ by jurisdiction and tax type. Make any mistakes along the way and your employees could be negatively impacted or your business may face penalties and interest.

Payroll tax management challenges

The challenges of payroll tax management lie in compliance complexity, heavy workloads for staff and legislative dynamics. As an employer, you need to:

  • Ensure that both deposits and tax returns are made on a timely basis to the appropriate federal, state and local agencies
  • Print and distribute year-end tax forms (W-2, 1099, etc.) according to applicable timeframes
  • Prepare and file any necessary amendments with federal, state and local tax agencies for quarterly and annual filings
  • Ensure that your enterprise resource planning (ERP) systems are integrated and delivering employee-level and company-level information
  • Validate tax filing and amendment information during reconciliation and auditing to check for errors – a time-consuming and tedious process
  • Monitor all payroll and unemployment tax law changes across all applicable jurisdictions
  • Understand the current requirements in every jurisdiction where you have tax liability
  • Be registered in each jurisdiction where you have workers getting paid

How a compliance solution can help address these challenges

A compliance solution can help boost efficiency and reduce risks associated with all aspects of payroll tax management. Depending on the provider, you can expect:

  • Intelligent technology that uses automated business rules to detect and flag errors
  • Automated tax deposits and filings – periodically/quarterly/annually for federal, state and local jurisdictions
  • Easy integration with most major payroll and ERP systems
  • 24/7 secure access to tax filings, reports, deposits, amendments and notices
  • Tax legislation monitoring and implementation
  • Tax notice receival, prioritization and response
  • Negative wage identification and resolution
  • Reconciliation of tax filing data and payroll data

Why should I purchase a compliance solution to manage payroll taxes?

A compliance solution can help simplify and unify your HCM compliance processes, including payroll tax management, and shield your company from both external and internal disruptions. ADP SmartCompliance®, in particular, offers a robust combination of technology, analytics and expertise. We even stay ahead of the latest tax legislation changes across all jurisdictions so that you don’t have to.

ADP Editorial Team

ADP Editorial Team The ADP editorial team is comprised of human resource professionals with extensive experience solving complex HR challenges for businesses of all sizes.