Over the last several months, I’ve noticed more discussions surrounding government regulations of payroll service bureaus. In an attempt to mitigate the risk of lost payroll tax revenue due to misappropriated funds, more and more states seem to be considering regulating payroll service bureaus, and many people in the payroll service industry seem not to like it. After all, who wants the government nosing into their business and enforcing even more requirements of business owners?
Then again, each time a payroll service bureau is discovered to have embezzled client payroll tax dollars, it makes other independent bureaus look bad, and serves to strengthen the “big box” providers in the payroll industry. Could regulations actually help independent payroll providers to prove they are on the up-and-up, and allow them to compete on a more even playing field with their larger competitors?
Payroll Tax Management has always placed a high value on providing clients with security and peace of mind. We have carried a multi-million-dollar crime bond throughout our entire history, increasing it periodically, and have been audited independently for SAS 70 II and now SSAE 16 controls, since 2004. We have nothing to hide, so I say “bring on the regulations!” If government regulations cause some disreputable bureaus to suffer, that can only mean good things for those of us who abide by proper business practices.
What are your thoughts? Let us know in the comments below!