How Does Staying Updated On Payroll Tax Changes Benefit Your Company?

How Does Staying Updated On Payroll Tax Changes Benefit Your Company?

Navigating the complexities of payroll tax updates requires staying well-informed, a task that Operations Managers and Founders know all too well. From consulting accountants to attending industry-specific tax seminars, we've gathered four key strategies that have proven beneficial for their companies. Discover how these professionals stay ahead of the curve, ensuring their businesses remain compliant and financially savvy.

• Consult Accountants for Tax Updates
• Utilize Newsletters and Webinars
• Leverage Advisory Platforms and Teamwork
• Attend Industry-Specific Tax Seminars

Consult Accountants for Tax Updates

I like to read news articles about tax changes, but our biggest asset is our accountant with whom we catch up monthly and discuss any changes, the latest advancements, and how they might impact our company's payroll taxes. For example, there was a change in tax rates for specific employee benefits, and our accountant promptly informed us of this change, which helped us to update our payroll system and comply with the new regulations. This prevented any potential penalties or fines and ensured that our employees were accurately compensated.

Utilize Newsletters and Webinars

As a technology CEO, I stay current with payroll tax updates through specialized tax newsletters, dynamic webinars, and networking with other industry leaders. This proactive approach has always paid off, like when the government initiated COVID-19 tax relief measures. I quickly interpreted and applied these changes, leading to substantial financial savings. This reallocation of funds allowed us to invest in upgrades for our technological infrastructure and prioritize the well-being of our employees.

Leverage Advisory Platforms and Teamwork

In our business at Blue Insurance, staying abreast of payroll tax changes is essential to manage compliance effectively. We leverage a mix of industry-specific updates from trusted advisory platforms and direct collaboration with our financial team to ensure that our payroll systems adapt swiftly to any legislative changes.

A practical example of how this approach has benefited our company occurred recently when there was an update in state payroll tax regulations. By having prior knowledge from our subscriptions to tax updates, we were able to anticipate this change and proactively adjust our payroll system accordingly. This preemptive action prevented potential fines and maintained the accuracy of our financial operations, demonstrating the direct benefits of staying informed and prepared.

Attend Industry-Specific Tax Seminars

I am constantly consuming information on any place a relevant tax change might occur. I also attend payroll and tax legislation seminars and webinars focused on the hospitality sector.

For example, when new federal tax credits were announced for restaurants keeping employees on during the coronavirus pandemic, restaurants armed with this information had a leg up. I stayed up to date, with regular updates and a good webinar from the National Restaurant Association, to apply to both types of disaster loans for which we qualified. I guess we wanted to ensure that we applied these credits effectively with payroll and how it interacts with our finance team of professionals.

This quick pivot not only kept us compliant but also saved us a lot of money in taxes—money we later used to increase the company's investment in training and to improve our operations in the restaurant. Being aware of these changes enabled us to optimize financial resources and take care of staff during an extremely difficult time, which is one of the biggest lessons on how vital proactive tax management is in the restaurant industry.