As a founder, one of your primary responsibilities is attracting and retaining the best employees for your startup. That may mean hiring someone in another state, accommodating an employee’s move across state lines, or hiring staff in a particular location to expand your business. Each out-of-state employee that your startup hires means you will have to make sure you’re compliant with the tax and employment laws in that jurisdiction. If you don’t register your company and keep your registration current, your startup’s payroll could get blocked.
Even if you’ve provided all the information to your PEO, you can still encounter issues with your payroll. Payroll can be blocked for a variety of reasons, and many of them may not be obvious. Blocks can involve a single employee or your entire staff, which can put your company in a very uncomfortable situation. Some reasons can include:
Delayed registrations. Different states process tax registrations at different rates. If you’re not already registered in the employee’s tax jurisdiction, there could be significant paperwork requirements, and some states still require submitting paper documents. If you’re not already registered in a state, there are a number of steps you need to follow.
If your payroll is blocked, try to determine the reason(s). Check the following items:
If you can’t determine why your payroll is blocked, you may need assistance to investigate the reasons and support to correct the payroll issue quickly. If you’re a Kruze Consulting client, contact your account manager as soon as possible, and we can work with you to resolve the issue. You can also contact your payroll provider for assistance, but remember that registering with tax agencies in different states and municipalities is a complex process. Your professional employer organization (PEO) typically does not handle that paperwork.
The tax team at Kruze Consulting is experienced at identifying and resolving payroll problems, and we can help you register your startup in state and local tax jurisdictions. For more information about the services we offer, contact us.
Bookkeeping Services Near Me