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Managing the Challenges of a Growing Business

When your business is growing, you have a good reason to celebrate – but you’re going to want to make it quick.

While growth gives business owners a few worries to scratch off the list of things that keep them up at night, there are plenty of new concerns rushing in to take their place.

Problems associated with business growth are good problems to have, considering the alternative. But if it’s your business that’s taking off, it’s important to recognize that the practices that got you here are not necessarily going to work as you expand. You want to be nimble enough to take on the competition and keep up with changes in the marketplace, but you’ve also got to manage doing it all on a different scale.

You’re going to need help. As you begin to scale up to accommodate the needs of a bigger company, your payroll processing needs are going to be different. Here are a few key challenges:

Making Sure Your Payroll Tax Process is Ready to Grow with You

When you’re in growth mode, you need a payroll process that can grow with you. And whether you do your payroll tax in-house or use a third-party provider, if your growth has you moving across state lines you need to be sure that you are prepared to handle the payroll tax requirements of a multistate workforce.

If you handle payroll taxes that branch out into other states, you will need to research the laws as each state has different deadlines and reporting requirements.

State unemployment insurance (SUI) tax is subject to complicated rules. For example, employees who are fully remote and work in different states pay SUI taxes to their home state instead of their work state. If an employee lives in one state, but works in another, the work state will receive the taxes. In a temporary transfer to a new state, SUI is paid to the permanent work state. For work done in multiple states, the SUI is paid to the state where the work is based.

Workers such as truck drivers, health-care employees, entertainers and professional athletes can present very complicated multistate tax issues. Some will end up owing taxes in several states. It’s a head-spinning collection of deadlines and calculations.

Check out reciprocal agreements that ensure that employees who live in one state and work in another are not double taxed. Arizona, for example, has reciprocal agreements with California, Indiana, Oregon, Virginia and Washington, D.C. Other states have no reciprocal agreements. Do your homework. For more information, access Payroll Tax Management’s whitepaper on Multistate Payroll Taxes here.

ACH Direct Deposit for Payroll: Third-Party Provider or a Bank?

ACH direct deposit payments are an important part of a growing payroll. You want to be sure that your employees have access to their money quickly, safely and without snags. Finding the right provider is key. Should you use a third-party provider or a bank?

ACH specialists often work longer hours than bankers and are able to provide the customer service necessary in a pinch. Processing specialists can extend ACH processing time and reduce the risk of mistakes. Most banks cut off processing at around 3 p.m. in their local time.

Banks typically charge higher fees than ACH specialists. Banks usually charge about 10 to 15 cents per transaction while ACH providers can charge half that amount or at least beat bank prices by 10%.

For further reading about the differences between banks and third-party ACH processors, you can access Cachet Financial Services’ whitepaper here.

The Partnership with the Tools You Need to Keep Up with a Growing Business

At FBG Holdings, we are committed to providing solutions for growing companies across the entire landscape of compensation issues. Our subsidiaries Payroll Tax Management and Cachet Financial Services’ partnership with CyberPay works to provide you with a broad array of solutions across payroll, payroll tax management, and ACH direct deposit payroll processing.

To learn more about FBG family of companies, visit our website at www.fbgholdings.com.