USA Payroll Services
At Bradford Jacobs, our Professional Employer Organization (PEO) platforms provide reliable solutions for companies wishing to establish their presence in the US economy. From the first steps of setting up operations to ensuring compliance with the local payroll laws and regulations, we offer dedicated USA Payroll solutions that can be personalized to your requirements. We aim make international expansion easy. We navigate the administration of the US payroll system for you – and as part of our service, we make the returns and associated payments for income tax at federal and state level directly from our payroll system to the relevant authorities.
Our teams step in to work alongside your company and you enjoy the benefits. We supply customized payroll solutions to meet the specific requirements of complying with the US’s regulations. At Bradford Jacobs, we realize each business faces specific issues in dealing with these troublesome issues – and we have the answer for every question. When expanding into a new country, you may encounter some challenges regarding payroll, but allow us to take the reins and answer any of your questions and concerns with our trusty guide on payroll for the US.
What US Payroll Options Are Available for Companies?
Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in the US to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems. Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in the US. However, this does require hiring dedicated HR staff who understand US employment and compliance laws.
US payroll processing company – If you are considering outsourcing, then working with a US payroll company will help in processing your payroll – but not when it comes to compliance. US payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in the US. We take the administrative stress off your shoulders so you can focus on what you do best.
US Payroll Services
Establishing payroll in the United States of America demands a total understanding of the employment and taxation laws. Further complexities are added by taxes being applied at federal, state, county, city, and municipal levels. Foreign businesses can thrive in the world’s largest economy, but the authorities strictly apply fines and sanctions for non-compliance with the legal aspects of payroll, taxation, and employment. It is best to ‘play safe’. Outsourcing payroll services to Bradford Jacobs Employer of Record (EOR) services safeguards your expansion. We make certain you always comply with this intricate web of laws when onboarding new employees. Our specialists remove the burden of US payroll, tax, and employment laws while you focus on building your business in the new territory.
As part of our service, we file returns and associated payments for wage tax and social security contributions directly from our payroll system to the relevant authorities. Staying up to date with federal, state, and municipal laws is a crucial element of our payroll services. Our role includes:
- Ensuring the employee has correct documentation, allowing them to work in the US
- Completing Form W-4 for remitting employees’ tax payments to the authorities
- Registering the employee with the relevant state’s Labor Agency
- Ensuring the employer has worker’s compensation insurance in place, which can vary between states
- Advising on the best payroll method so the employee can receive their wages. This involves paying employees, paying payroll tax to the Internal Revenue Service (IRS) and the state’s tax agency, if applicable, and filing tax returns
- Negotiating any tax exemptions for skilled expats (where applicable)
- Reconciling national, state, and local taxes to assess for refunds or extra payments
- Calculating employees’ monthly salary and sending their pay slips
- Researching for any available tax incentives
- Submitting employees’ and employers’ wage tax returns
- Creating and submitting your company’s annual accounts and year-end statements
- Creating payment schedules for salaries and any insurance contributions (if applicable)
- Ensuring accurate personal income tax returns are filed for you and your employees, where required
What is required to set up Payroll in the US?
As the strongest economy in the world, the United States of America is a prime target for international expansion. But companies planning to move in must comply with basic legal requirements attached to running payroll, paying particular attention to income tax, minimum wages, overtime pay and employee benefits. All companies must establish a legal entity in order to process payroll. An employer must have an Employer Identification Number (EIN) before remitting forms and withheld taxes to the Internal Revenue Service (IRS) and can apply for an EIN online using the IRS website. Employers must also register to pay federal taxes electronically through the Electronic Federal Tax Payment System.
- Employers must be registered to withhold income tax from their US-based employees and remit payments to the Internal Revenue Service after completing form W-4, which legally entitles them to deduct contributions.
- Employers must also withhold state income tax if they, or any of their employees, are located in states where this applies.
- Additional federal and state taxes are paid to comply with the Federal Unemployment Act.
- Payroll must be set up to deal with overtime pay. Employees who are covered by the Fair Labor Standards Act (FLSA) are entitled to one-and-a-half times their regular pay rate if they work more than 40 hours a week.
- Payroll platforms must also comply with the Federal Insurance Contributions Act (FICA) and withhold taxes for social security and Medicare, matching the payments that are taken from employees’ salaries.
- Employers must keep payroll documentation for three years, including employment contract, social security number and their I-9 employment eligibility verification form, timecards, and payment records. Some states require other data to be kept and in California and New York, for example, documentation must be retained for six years.