Professional employer organizations (PEOs) are usually the ones helping people experiencing growing pains.
Take any successful new business: They want to grow, but at the same time they have to provide HR and other critical services for their workers. Those are all necessary things but are often a huge time and money sink for a small business.
Enter the PEO. They can do the heavy lifting of compliance and regulatory tasks small businesses struggle with…while leaving the business free to focus on what they do best.
All good. So, who helps PEOs?
Phrases like “quarter-end” and “year-end” make PEOs sweat. They’re all-hands-on-deck periods of the year, meaning PEOs pull people from other departments to pitch in during crunch time. Which is fine, except their regular work starts piling up and if a PEO’s people aren’t tax pros, there’s a good chance of mistakes and irregularities in their filing, both of which can kill a business.
Plus, trying to handle payroll taxes on your own is often a fast route to disaster.
It’s why you need scalable payroll tax solutions suited to their particular needs. For a PEO tired of being in a jam at tax time, a third-party payroll tax service provider is a match made in heaven. But what if you want to keep your hands on your money?
Our new video shows how Payroll Tax Management’s FlexTax ® Direct Bank has you covered.
Taking the Direct (Bank) Approach to Taxes
It’s simple – with FlexTax Direct Bank, PTM doesn’t touch your money. Instead, you have complete control over your clients’ tax funds. You pull their money into your impound account and we create a payment file. You take that file from a secure site and forward that to your bank. From there, funds are pulled from your impound account and sent on the right dates.
“The best way to think about it is this: If you have a car loan, the bank pulls money from your account on a specific date every month,” says PTM’s National Sales Manager, Richard Cole. “It’s kind of the same thing. Basically, we produce a payment file for our clients to give to their bank, and then the bank handles it from there.”
Since we’re not impounding your money, you have an opportunity to earn interest on those funds.
Better yet, PTM also acts as your back office. At quarter- and year-end, PTM prepares and files returns, and also schedules tax payments. This keeps you and your staff on task … and free from worries about reconciliation issues, errors or variances. “We work with (our remarketers) to take care of those variances; we balance everything out,” says Cole. “So when we do file, everything is as straightforward as possible.”
Have Control Over Client Tax Funds
PTM is the only payroll tax management company which offers a direct bank option. We’ve put together a short video explaining how FlexTax Direct Bank helps keep PEOs, ASOs and any company wanting greater control over their funds working smoothly and free from compliance issues. Check it out:
If you want to know more about Direct Bank or the rest of PTM’s range of products, contact an expert today.