Brush up on your payroll tax software implementation do’s and don’ts with Nixon Adoyo, Client Services Manager at PTM
As Client Services Manager at Payroll Tax Management, Nixon Adoyo helps streamline the client experience and guide clients through the process of implementing payroll tax software. Adoyo has over a decade of experience in payroll services and his expertise has given him insight into the most pressing questions and concerns that new clients have. Here he shares some tips for clients getting started with payroll tax software.
6 Tips for Implementing a New Payroll Tax System
1. Know Your Payroll System: This starts with doing your homework to make sure you find a system that meets your needs. Once you do, make sure you have a thorough understanding of how to navigate it, including the process for vetting data and testing for errors. You need to understand how taxes are being deducted for each employee so that you are sure that the numbers being reported correspond to the correct withholding amounts for each taxing agency.
2. Know When It's Time to Update Your Payroll Software: Compliance alerts and other changes to regulations may require you to update your payroll software. Be sure to ask your software provider if the necessary changes are being made. At PTM we pass along new information from any jurisdiction to our clients so they can update their software to reflect any regulatory changes.We even give our clients a payroll tax guide, which encompasses requirements for every state. Outdated information coupled with outdated software can lead to overpayments, underpayments or worse – penalties and interest.
3. Ask the Right Questions of Your Prospective Clients: Before acquiring any new clients for your payroll tax services, make sure you know everything you need to know about their tax situation so nothing is missed. PEOs for example, may pay some taxes under combined account numbers and others separately. Does your prospective client have any unpaid taxes or other special circumstances to consider? A thorough interview up front will make onboarding much smoother.
4. Take Time to Prepare for Quarter End Processes: Have a comprehensive plan for how to tackle those items. Give yourself plenty of time to ensure that your data is correct. We recommend having a pre-check process in place. At PTM we offer our clients a pre-check that can root out any reconciliation issues or missing information, like social security numbers. Taking an extra step or two in advance can prevent you from finding yourself on the hook for penalties and interest later.
5. Pay Attention to Unusual Patterns of Agency Notices: Agency notices can be a symptom of a bigger problem. If more notices than usual are being generated, you may have a problem that is bigger than resolving a single issue. It could be a symptom of something that’s broken in the process. Check for patterns. If you’re getting more notices than you should be over a period of time, it’s a red flag.
6. Make Sure You Have the Right Product: Be sure to periodically review the tax product you’re using. If your business has grown or your goals have changed, it may be time to consider different software or service. At PTM we offer a range of tax products that allow clients to choose how much they want to do in-house. Depending on your needs and goals, you may want to outsource only part of the process. If your product and goals are mismatched, you’re likely paying for it in reduced efficiency. To compare our different levels of software and services, view our Buyer’s Guide.
Implementation that Doesn't Get Lost in Translation
Whether you're just getting started or you're in a period of expansion, the experts at Payroll Tax Management can help you determine the right system for you and walk you through the entire implementation process. We offer a full suite of payroll tax services and software with the flexibility to help you in the way that works best for your business, now and in the future. We have expertise in compliance in more than 11,000 taxing agencies across the U.S. and Canada and a range of solutions for dealing with your trickiest payroll tax scenarios. As innovators in the payroll tax industry since 1969, we've helped thousands of clients streamline and automate their payroll taxes with secure, reliable and efficient processes that let them sleep well at night.