December 12, 2022
2023 ApplicantPro Review: Pros & Cons, Pricing, and Features
ApplicantPro is a cloud- and web-based recruiting software that includes background checks, applicant tracking, preemployment assessments, and onboarding tools. It has customized pricing that starts at $60 to $150 per month for up to 20 employees. ApplicantPro got a total score of 4.26 out of 5 in our best recruiting software evaluation because it provides a comprehensive set of tools to let you create a branded website, post jobs, schedule and conduct video interviews, and perform background checks. It lost points because of its nontransparent pricing and lack of a free plan; it is also one of the few recruiting software without a mobile app. ApplicantPro Overview What We Recommend ApplicantPro For ApplicantPro’s job creation tools simplify posting to multiple locations while saving these jobs for future use. Because it’s packed with many recruiting features, along with strong onboarding tools, it has earned a spot in our list of best recruitment software. Depending on the chosen plan, users can have it custom-fit to their business’s needs. Also, its multiple pricing options can accommodate businesses of varying sizes. In short, ApplicantPro is best for: Businesses with irregular hiring needs: For its pay-per-job plan, ApplicantPro offers basic features allowing users to post jobs to more than 1,000 job boards and use their communication inbox. For organizations that don’t hire often, advanced applicant tracking features, such as employee referral portal, may not be necessary. But ApplicantPro’s pay-per-job tools are enough to accomplish simple hiring-related tasks. Users can just pay for the number of jobs they plan to post, so it’s a cost-efficient option to simplify the way you hire employees for your business. Businesses that want expert help with their recruiting: For organizations with different hiring stages or those who want custom recruiting software, ApplicantPro is an excellent choice. Its most expensive plan provides a team of experts that will create branded career sites and job postings. Its experts can highlight the best applicants via applicant screening and will refresh job ads each month. Businesses that hire remote and international workers: ApplicantPro’s job push tool lets you post jobs to various locations, making global talent sourcing more effective. Also, hiring remote workers is simple with their candidate video chat feature and, if necessary, doing background checks is also possible. When ApplicantPro Would Not Be a Good Fit Businesses looking for a free recruiting software: Although ApplicantPro provides a free trial for businesses, it doesn't provide a free plan, even for its basic features. That said, those looking for a free solution should consider Freshteam instead, which provides up to three job postings per month for free. Those looking for software with a mobile app for applicants: While ApplicantPro allows the applicant to apply through a mobile career site, it doesn’t offer a mobile app. Instead, consider using ZipRecruiter, which has a mobile app for both Android and Apple users. ApplicantPro Top Alternatives ApplicantPro may offer flexible and affordable plans but it doesn’t post pricing on its website, which can delay small businesses’ decision-making. It also doesn’t offer a free plan, even with basic tools. Specific pricing of ApplicantPro’s plans depends on the company size and the modules purchased. You must contact ApplicantPro to get a specific quote, but here’s a range of their prices: ApplicantPro’s plans don't involve a contract, which means you can upgrade, downgrade, or opt out of the subscription at any time. The plans include essential applicant tracking features such as a branded careers site; online application; posting to more than 1,000 free and paid job boards; and phone, email, and chat support. Check out what other features to expect from ApplicantPro. ApplicantPro also has a Full-Service Hiring plan with custom pricing. It includes access to its expert team of sourcing specialists and ApplicantPro will write the job ads, post to top-performing channels, refresh job ads every month, and screen applicants to highlight the best candidates. ApplicantPro has a multitude of features that helps simplify the recruiting process by enabling businesses to find good candidates and providing an effective way to communicate with applicants. The only thing preventing ApplicantPro from getting a perfect score in this criterion is the lack of its own job board, although it makes up for it with its ability to post to more than 4,000 free and paid job boards. For the functionality criterion, ApplicantPro ticked all our boxes, giving it a perfect mark. With it, you can create a job listing easily with its job ad templates and add screening questions to weed out applicants who don’t meet your needs easily. You can also communicate easily with the hiring team and candidates on the platform. Another criterion with a perfect mark for ApplicantPro is reporting. The program supplies different reports depending on your chosen option. For example, you can generate a report on the number of applicants who possess a certain degree or other criteria. Here, you can also view candidate source, user activity details, and other HR and recruiting metrics. ApplicantPro allows its users to gain detailed insights regarding the success of their recruitment efforts. However, the presentation of these reports isn’t very visual as it lacks charts or graphs to encourage a better understanding of the data. The program only provides a list of information sorted by different headers. ApplicantPro is user-friendly and quick to master. However, it doesn’t have video tutorials on its website. It also lacks a mobile app, and its platform isn’t as mobile-friendly as other competitors. ApplicantPro has many things going on with its dashboard and can sometimes be confusing. However, it’s not difficult to figure out once you know what you’re doing and if you’ve explored the tools long enough. Fortunately, the program has explanations of some features when you hover over them. Here are some things that make ApplicantPro easy to use: Information-packed interface In-app help Live chat and phone support Frequently asked questions (FAQs) Another area in which ApplicantPro excels is providing in-app help, which helps new users get answers on how to use a particular feature. Its searchable FAQs make it quick to find answers to your questions. ApplicantPro also has live chat support, estimating the time they’ll get back to you, Mondays through Fridays. For immediate concerns, ApplicantPro provides a phone number. ApplicantPro got good reviews from users but it’s not that popular. Users who left feedback loved the all-in features from applicant sourcing to onboarding. They especially liked that they can post jobs to specified locations. Users also found the integrated communication inbox helpful and the SMS feature convenient. In-app chat, FAQs, and phone support also contribute to a pleasant experience using ApplicantPro. However, users complain about the program’s outdated interface, which often looks too busy. Similarly, users observed that the reports lack charts or graphs, which could provide more meaningful insights into various data. Some found the candidate filters to not work properly. At the time of publication, ApplicantPro reviews earned the following scores on popular user review sites: Capterra: 4.6 out of 5 based on around 350 reviews G2: 4.2 out of 5 based on more than 85 reviews Bottom Line collaboration and communication tools make for a smoother hiring process. With its features, users can customize their application tracking process and make candidate searching more effective. Despite its less intuitive user interface, ApplicantPro has provided customer support systems, including in-app FAQs and chat. For immediate concerns, it also has dedicated phone support. Check out ApplicantPro’s website for pricing and a free demo.
December 9, 2022
2023 Payroll4Free Review: Pricing, Features, and Alternatives
provides a full range of online payroll solutions optimal for small businesses (with up to 25 employees). It offers a free basic payroll service that includes vacation time tracking, detailed reporting, and access to payroll tax calculations and forms. You also get an employee portal, enabling your staff to view their pay slips, W-2s, and accrued vacation time credits online. For an extra fee, Payroll4Free can even handle payroll tax payments and filings, plus direct deposit. Based on our expert review, Payroll4Free is a good payroll option for those looking for a cost-effective solution for their basic payroll needs. However, businesses looking for a robust tool should look for other options. Although it didn’t make our recommended providers, we evaluated Payroll4Free against our best payroll software rubric and got an overall score of 2.87 out of 5. It got high marks for pricing because of its free forever plan for up to 25 employees and even got a perfect mark for reporting. However, it didn’t perform as well in other criteria, such as in HR features, for lack of tools such as self-service portal for employees, online onboarding, benefits, and health insurance. It also lacked payroll features, like pay on-demand, and charges extra for year-end tax reports. It isn’t as user-friendly compared to similar software, and its lack of user review ratings also affected its popularity score. Payroll4Free Overview What We Recommend Payroll4Free For With Payroll4Free, you get access to free-to-use online payroll tools. And although the system is pretty basic and outdated, it can handle both employee and contractor payments, plus you can pay your staff with checks or direct deposits. Getting its system up and running is also relatively easy given its guided account setup wizard—although its interface isn’t as intuitive as popular small business payroll software like Gusto. While its free payroll solution doesn’t include tax payments and filings, you can opt to add that service for a monthly fee of $25. If you prefer to use Payroll4Free’s bank account for your direct deposit transfer transactions, you can do so for $25 per month. However, Payroll4Free will only charge you $30 per month if you need both services. In short, Payroll4Free is best for: Entrepreneurs and small business owners (with up to 25 employees): Payroll4Free ranks second on our list of best free payroll software. Its system and basic services come at no cost, provided your business doesn’t exceed 25 employees, and it offers tax filing and direct deposit services as reasonably priced add-ons. This helps you keep overall payroll processing costs to a minimum. Small companies employing 25 or fewer contractors: With Payroll4Free, you don’t need to find another payroll software to handle contractor payments. The provider’s platform can process salaries for contractors, compute the applicable taxes, and create year-end 1099 forms—all for free. When Payroll4Free Would Not Be a Good Fit Midsize to large businesses: Payroll4Free is designed specifically for small businesses. If you have more than 25 employees, you may want to consider other payroll providers in our best payroll services guide. Business owners needing both HR and payroll tools: Apart from paid time off (PTO) tracking, Payroll4Free doesn’t have the essential HR tools (like onboarding and state new hire reporting) that other small business payroll providers offer. For more suitable solutions, read our best HR payroll software guide. Mac computer users: The provider doesn’t have a software version for Mac and is compatible only with Windows-based computers. However, a workaround is choosing to run Windows on your Mac instead of Apple’s macOS. You can also check out our guide to the best payroll software for Mac users for other options. Top Payroll4Free Alternatives Payroll4Free got an excellent score for pricing because it is very affordable for small businesses. In fact, it’s free for businesses with up to 25 employees—and if you use its service to process and submit payroll taxes, you’ll only need to pay a small fee. With its free plan comes other helpful features such as a direct deposit option and an employee portal. However, Payroll4Free doesn’t offer multiple scalable plans. While Payroll4Free’s basic services are free for small businesses with up to 25 employees, it offers paid add-ons to help improve your payroll processes. If you want the provider to deposit and file payroll taxes on your behalf, Payroll4Free’s pricing for its automated tax services is $25 per month. However, if you get both tax filing and direct deposit services, you only have to pay $30 monthly. Payroll4Free can calculate and file payroll taxes. It lost points because it lacks a pay on-demand option and charges extra for year-end tax report preparation and delivery. Payroll4Free also will cover penalties for their mistakes and only automates federal and state taxes. Payroll4Free’s online tools and services are designed to help small businesses accurately and securely process employee payments. It can handle all types of payroll—from basic to complex pay computations. Here are some of its essential features: If you’re looking for a payroll solution with basic tools for HR management, then Payroll4Free is not for you. It lacks an online onboarding option and does not have a self-service portal for employees where employees can update their personal information and submit required documents. It also lacks benefits options, health insurance, and expert advisers for compliance issues. On the brighter side, Payroll4Free lets you monitor PTO accruals and allows employees to view pay stubs, check remaining PTO balances, and more. Aside from its basic reports, Payroll4Free lets you create custom reports as needed. Payroll journals, tax reports, and detailed earning summaries are just some of the reporting options available on Payroll4Free. While you are provided access to a good selection of reports, they have limited customizability. Payroll4Free scores modestly for this criterion. Its main strength is its affordability. However, it doesn’t have robust payroll and HR features. So, if you’re looking for more than basic payroll functions, such as automatic filing of federal, state, and local taxes, then you might consider Gusto or QuickBooks Payroll. Guided account setup Email and phone support with access to payroll and tax experts Supports data imports from time clock devices Data exports to banks, benefits providers, and accounting solutions Payroll4Free isn’t as intuitive as popular payroll solutions like QuickBooks Payroll and Gusto. It has an outdated-looking platform, and you sometimes need to take additional steps to complete what other payroll systems can do in a single click. Plus, be prepared to see in-app ads while using Payroll4Free’s platform. Apart from its paid add-ons, ads are another way the provider earns money since its software is free. While Payroll4Free has a step-by-step wizard to assist you with the initial setup, the process isn’t straightforward. You have to go through several steps, complete online forms, and submit requirements (like a copy of the IRS-provided Form SS-4). The provider needs these documents to set up your company account before you can use the system. Payroll4Free has a team of payroll and tax professionals you can contact if you have questions. This comes free of charge, and you can contact them via phone and email as many times as you need and want. Payroll4Free can also help configure payroll data exports to third-party solutions (like accounting and benefits companies). Its services even include setting up data imports from time clocks that track employee attendance—provided that the device supports file transfers. There are very few up-to-date Payroll4Free reviews online as of this writing. Those who left positive feedback like that it is free and has all the basic yet essential tools they need to process payroll. Others, on the other hand, said its platform isn’t intuitive, looks dated, contains ads, and has limited customization options. At the time of publication, Payroll4Free reviews earned the following scores on popular user review sites: Capterra: 3.2 out of 5 based on around 10 reviews G2: 4.5 out of 5 based on 1 review Bottom Line If you want basic payroll services (for up to 25 employees) for free, then is a good option. Its online payroll software is designed specifically for small businesses and comes with an easy to set up platform equipped with all the tools you need to process employee and contractor salary payments. However, you have to contend with in-app ads and limited customization options. The provider’s tax payment and filing service is also a paid add-on, but the additional $25 monthly fee is a small price to pay compared to handling payroll tax deposits and submitting tax forms to various government agencies by yourself.
December 7, 2022
How to Do Payroll in Wyoming: What Every Employer Needs to Know
Wyoming is one of the easiest states in which to run payroll. With no state income tax, your calculations of Wyoming payroll tax will be simple. That doesn’t mean you can just zip through payroll, however, as you still need to ensure that you’re following federal and state HR laws. If you need help running your Wyoming payroll, consider using payroll software like . It files and pays your payroll taxes and covers any penalties you are charged if its reps make a mistake (it’ll cover your mistakes too if you opt for a premium plan). You can pay employees via direct deposit or check, and same-day payment options are available as well. Sign up for a free trial or discounted rate. Step-by-Step Guide to Running Payroll in Wyoming Here is a basic guide to running payroll in Wyoming. Step 1: Set up your business as an employer. New companies may need to access the federal Electronic Federal Tax Payment System (EFTPS) to create a new Federal Employer Identification Number (FEIN). Your FEIN is required to pay federal taxes. Step 2: Register your business with the State of Wyoming. If your business is new, you need to register on the Wyoming Secretary of State’s website. Any company that pays employees in Wyoming must also register with the Wyoming Department of Revenue. Step 3: Create your payroll process. When you have a new business, you’ll need to create your payroll process from scratch. It’s important to decide how you’ll pay your employees, and when. However, a business that is already established probably has a process that you inherit, but it may need to be altered to better fit your needs. You can opt to process payroll by hand (not recommended), set up an Excel payroll template, or sign up for a payroll service to help you handle your Wyoming payroll. Step 4: Have employees fill out relevant forms. Your business must have every employee complete payroll forms during their onboarding process. Every employee must complete I-9 verification. New employees must also have a completed W-4 on file, plus a direct deposit authorization form if applicable. Step 5: Review and approve time sheets. A critical component of your payroll process includes collecting timesheets before your payroll due date. Reviewing the time sheets from your nonexempt employees before the day your payroll is due gives you time to speak with anyone who might have made mistakes. There are many ways to track employee time—some of which are free. Step 6: Calculate employee gross pay and taxes. Even though Wyoming has no state income tax, you’ll still need to calculate some taxes, including unemployment. These can be complex, and even innocent mistakes can cause costly fines and penalties. Learn more about how to calculate payroll if you need help. You can also use our free time card calculator if you need help calculating total employee hours worked. Step 7: Pay employee wages, benefits, and taxes. The most convenient way to pay your employees is through direct deposit. But cash and paper checks are also options. Wyoming does not have a state minimum wage, so the federal minimum wage of $7.25 per hour applies. You can pay your federal and Wyoming state taxes online. If you use a benefits provider, it should work with you to make deductions simple, automatic, and electronic. Step 8: Save your payroll records. Keeping your company business records is good practice. Wyoming requires businesses to keep records of all hours worked and wages paid to each employee, including their name, address, and date of birth, for at least two years. For reference, if your business is subject to the Fair Labor Standards Act (FLSA), it requires you to keep these records for at least three years and payroll tax records for four years. Step 9: File payroll taxes with the federal and state government. All Wyoming state taxes need to be paid to the applicable state agency on the schedule provided, usually quarterly, which you can do online at the Wyoming Internet Filing System for Business website. To pay federal taxes, you can make those payments online using the EFTPS on one of the following two schedules: Monthly: When the IRS assigns you a monthly schedule, you need to deposit employment taxes on payments made during a calendar month by the 15th of the following month. Semiweekly: When the IRS assigns you a semiweekly schedule, you must deposit employment taxes for payments made Wednesday, Thursday, and Friday by the following Wednesday, and for payments made Saturday, Sunday, Monday, and Tuesday, by the following Friday. Please note that reporting schedules and depositing employment taxes are different. Regardless of the payment schedule you are on, you only report taxes quarterly on Form 941 or annually on Form 944. Step 10: Complete year-end payroll reports. Doing payroll in Wyoming requires more than just paying employees on a regular schedule. Every year, you will need to complete payroll reports, including all W-2 Forms and 1099 Forms. You must provide these forms to employees no later than Jan. 31 of the following year. Download our checklist to make sure you don’t miss any steps. Wyoming Payroll Laws, Taxes & Regulations Doing payroll in Wyoming will require that you calculate Wyoming payroll taxes and ensure compliance with all federal and state employment laws. To help you maintain compliance with payroll regulations, review Wyoming’s relevant regulations below. With few exceptions, most employers in the U.S. must pay Federal Insurance Contributions Act (FICA) taxes. The current FICA tax rate for Social Security is 6.2% and 1.45% for Medicare. Both the employer and the employee will pay these taxes, each paying 7.65% for the combined Social Security and Medicare taxes. Wyoming Taxes Like most states, Wyoming has certain taxes that companies must pay. However, since Wyoming does not have a state income tax, you will not need to withhold taxes from employee paychecks. Wyoming does not levy local taxes on employees. Income Taxes Wyoming does not have a state income tax nor local taxes. Employer Unemployment Taxes All employers in Wyoming must pay State Unemployment Tax Act (SUTA) taxes. The current wage base is $27,700 and rates range from 0.48% to 9.78%. In 2023, the wage base will increase to $29,100. New Wyoming businesses must submit documentation to have their rate calculated, considering their industry. If a business does not complete these forms, the state will give them a rate of 8.5%. Businesses that pay SUTA in full and on time can claim a tax credit of up to 5.4% on their Federal Unemployment Tax Act (FUTA) taxes. Workers’ Compensation Wyoming requires every employer with one or more employees to carry workers’ compensation insurance. Workers’ compensation insurance provides benefits to employees who suffer on-the-job injuries and covers the cost of medical treatment and lost wages. This protects you from potential lawsuits in the future. You’ll need to pay this out of your business bank account; you can’t withhold funds from employee paychecks to cover workers’ comp. Wyoming Minimum Wage Wyoming’s state mandated minimum wage is $5.15 per hour, which is below the federal minimum wage of $7.25 per hour. Unless you qualify for an exemption (i.e., earn <$500,000 annually in revenue and don’t perform any services for out-of-state customers), you should stick to paying employees at least $7.25 per hour. For tipped employees, companies must pay at least $2.13 per hour, provided that their tips get them to $7.25. If not, the company must make up the difference. There are some exemptions, i.e., minors and interns, for whom you may be allowed to pay less. Calculating Overtime Wyoming overtime rules follow FLSA requirements. Under the FLSA, all employers must pay employees 1.5 times their regular hourly wage for hours worked over 40 in a workweek. Paying Employees There is no broad Wyoming law that requires you to pay workers a certain number of times per month. However, Wyoming law does require employers in the following categories to pay employees at least twice per month: Railroad Mine Refinery Factory Mill Workshop Oil Gas Employers in these areas of work must pay employees for work done from the first through the 15th of the month by the first day of the following month. They must then pay employees for work done between the 16th and the last day of the month by the 15th day of the following month. Wyoming also allows you to pay workers by one of the following methods: Cash Paper check Direct deposit, only if authorized by the employee in writing Wyoming law does not address whether a company can pay an employee by payroll card, but if you get authorization from the employee in writing, it may be safe to do so. Pay Stub Laws You must give each employee a pay stub with every paycheck. The pay stub can be paper or electronic and must show all deductions made from the employee’s wages. Wyoming Paycheck Deductions You can deduct wages from an employee’s paycheck, provided the deduction meets the specific reasons listed below: Cash shortages Broken, damaged, or destroyed company property Required tools and uniforms Other necessary items required for employment Terminated Employees’ Final Paychecks When employees quit, resign, or are discharged, fired, or laid off, you must pay them no later than the next regular payday. Wyoming does not address how to handle final paychecks for employees who are suspended or resign due to a labor dispute, so it’s best to assume that you need to pay them no later than the next regular payday, or sooner. Wyoming HR Laws That Affect Payroll Wyoming has a few state-specific HR laws that you need to know. The state mostly follows federal guidelines, so if you are familiar with those, you should have no issues understanding the additional Wyoming HR laws. Wyoming New Hire Reporting Every employer in Wyoming must report new hires and any rehired employees to the Wyoming New Hire Reporting Center within 20 days of their hire date. This information is used to enforce child support orders and must include the employee’s name, address, and Social Security number. Meals and Breaks Wyoming has no law requiring employers to provide workers with meal or other types of breaks. So, the federal rule would apply, which does not require any employer to give workers a break. However, if given, breaks of less than 20 minutes must be paid, while breaks or meal periods over 30 minutes generally do not need to be paid. Wyoming Child Labor Laws Wyoming does not restrict the working hours or days of children aged 16 and 17, provided that they are given at least one break if they are scheduled to work more than four and a half consecutive hours. However, minors aged 14 and 15 can only work up to three hours on school days. On non-school days and when school is not in session, they can work up to eight hours per day and 40 hours per week. Time Off and Leave Requirements Wyoming generally follows federal regulations when it comes to time off and paid leave. Click through the tabs below to learn more about your responsibilities as an employer. Payroll Forms Because Wyoming does not have state income tax, there are no state-specific payroll forms. Federal Payroll Forms Here is a complete list and location of all the federal payroll forms you should need. W-4 Form: Provides information on employee withholdings so you can properly calculate and withhold federal and state income taxes W-2 Form: Used to report total annual wages for each employee W-3 Form: Used to report total annual wages for all employees; summary form of W2 Form 940: To calculate and report unemployment taxes due to the IRS Form 941: Used to file quarterly income tax Form 944: Used to file annual income tax 1099 Forms: Provides information for non-employee contract work For a more detailed discussion of federal forms, check out our guide on the federal payroll forms you may need. Wyoming Payroll Tax Resources Wyoming Department of Revenue provides many forms, information on the latest laws and regulations, and other employer-specific information. Wyoming Department of Workforce Services offers support and resources to help businesses ensure compliance with unemployment and workers’ compensation, plus other labor laws. Bottom Line Wyoming has no state income tax and just a few state-specific HR laws. Combined, this makes the state one of the easiest in which to run payroll. However, this doesn’t mean you should calculate your company’s payroll taxes by hand, as that could lead to costly errors.
December 7, 2022
2023 Deel Review: Is It the Right Global Payroll Service for Your Business?
is an international payroll and hiring solution for businesses with plans to expand globally. In our review of the best international payroll services, Deel earned an overall score of 4.41 out of 5. It offers employer of record (EoR) services, which enables you to hire, onboard, and pay employees and contractors in more than 150 countries. Running global payroll is also a breeze with its easy-to-use online platform and multiple payment options. Further, its network of over 200 in-country expert partners ensures you remain compliant with local laws and tax regulations. Its monthly fees for hiring and paying international contractors start at $49 per worker. If you need EoR services, Deel will charge you $599 per employee monthly. For qualified venture capital (VC)-backed startups, you get discounted pricing on your first year. Deel Deciding Factors Looking for something different? If you only want online tools to pay US-based employees, check out our list of the best payroll services. If you need help deciding which payroll software to get, read our guide to finding the right payroll solution. Top Deel Alternatives In our evaluation, Deel nearly earned a perfect score for pricing given its reasonable fees, multiple plan options, and separate payroll plan for contractors. It lost points because not all of its product’s pricing details are available on its website. For contractors, Deel offers three packages with monthly fees that start at $49 per worker. Meanwhile, its pricing plans for employees are based on whether or not you own business entities in countries you want to expand to. Note that aside from automated payroll with one-click payments, all Deel pricing packages include access to local benefits plans, expense and time-off tracking, tax document management, customizable contracts, data protection agreements, compliance support, and intellectual property and invention rights protection. Contractors Hire contractors: For $49 per worker monthly, you can compliantly hire and pay contractors in 150+ countries, as well as use Deel’s localized contracts, online onboarding, automated invoicing, and document management tools. Deel Premium: This custom-priced package comes with an additional layer of protection against contractor misclassification issues. If a misclassification claim arises, Deel will cover all legal fees, tax penalties, and third-party indemnity costs of up to $25,000. Deel Shield: The differences between this custom-priced plan and the Deel Premium tier include access to a global team who can help manage administrative HR tasks and a more robust contractor misclassification protection service. With this plan, Deel will review each contract and confirm whether or not you can hire the worker as a contractor. Deel will even assume total liability for contractor misclassification cases. Employees Hire employees: For $599 per employee monthly, you can make use of Deel’s local entities in 80+ countries to hire, onboard, offboard, and pay employees. Run global payroll: This custom-priced plan is ideal for businesses with local entities worldwide and only need a payroll tool to pay international employees. In our evaluation of Deel’s payroll features, the provider earned a 3.88 out of 5 score. It didn’t get a perfect rating in this criterion because it lacks time tracking tools (only offers PTO management) and doesn’t own local entities in all the 150+ countries it services (only 80+ as of this writing). Deel earned perfect marks for HR functionalities given its solid compliance support and onboarding/offboarding tools. With its EoR services, Deel handles hiring and essential HR administrative tasks for you so you can find and hire qualified candidates. Aside from granting access to customizable employment contracts and local benefits plans, it has online global hiring guides that you can use for free. In our evaluation of Deel’s reporting functionalities, the provider received a perfect rating in this criterion given the payroll and tax reports it provides. Reports are also downloadable in CSV and PDF file formats. In addition to localized employment contracts that you can customize, it has a library of job profiles you can use to identify your contractors’ scope of work. It even comes with salary benchmarks based on market insights to help you check whether or not the salary you’re offering for a specific job title is below, at par, or above market rates. Deel earned high marks in this category given its user-friendly platform, solid HR and compliance support, and 24/7 customer assistance. It didn’t get a perfect rating because it lacks phone support and doesn’t provide dedicated account managers to all of its clients (only to large businesses). Easy-to-use platform One-click payments and automated processes Visa support Online global hiring guides and tools How-to guides 24/7 in-app live chat support Dedicated customer success manager Access to legal and compliance experts Accounting and HR software integrations with open API What I appreciate about Deel is the compliance support it offers, helping you manage global employees while ensuring you remain compliant with local labor laws and tax regulations. Its online platform is relatively simple to learn and use, plus it comes with online tools that make global hiring and pay processing easier to handle. Tracking important deadlines and tasks (such as payment and time-off requests) is also made easy through Deel’s online dashboard. Reminders are sent to you via email, and you can choose what type of notifications you can receive from Deel. For those who are using accounting, financial, and HR software, Deel integrates with popular systems like QuickBooks, Xero, Workday, Expensify, Greenhouse, BambooHR, HiBob, and Workable. It also supports custom integrations via an application programming interface (API). If you require assistance, its help center contains how-to guides, FAQs, and articles that provide more insight into its services. If you have questions about global recruiting, Deel’s website has a hiring toolkit that contains salary insights, a misclassification quiz for identifying the risks of hiring a contractor, and online tools for exploring local benefits packages, calculating employee costs, and comparing local laws and employer costs in more than 80 countries. What I don’t appreciate about Deel is the lack of phone support. You can only contact its support team through live chat and submit inquiries via the “Submit a request” online form. While it has dedicated account managers, Deel only provides this to large businesses. In our expert assessment, Deel earned a rating of 3.75 out of 5. Its relatively user-friendly interface, efficient EoR services, and solid global payroll tools contributed to its score. It lost points because its HR solutions, while sufficient enough to handle global hiring and onboarding, aren’t as robust as competitors like Rippling’s all-in-one HR platform. For example, aside from hiring and payroll, Rippling comes with time tracking, learning management, employee surveys, and a flexible professional employment organization (PEO) service you can easily turn on and off—features that Deel doesn’t have. Further, Deel’s EoR and global contractor solutions aren’t as budget-friendly as similar international payroll services. For instance, Papaya Global offers contractor management for only $25 per worker, per pay cycle (Deel’s monthly fee starts at $49 per contractor). Meanwhile, Oyster’s EoR service starts at $399 per employee monthly (Deel’s is priced at $599 per employee monthly). Many of the Deel reviews on third-party review sites like G2, Capterra, and Trustpilot are positive. In our evaluation of this provider’s popularity among users, Deel received a 3.75 out of 5 score in this criterion given its average rating of 4 and up on online review sites. It didn’t get a perfect score in our assessment because its average user reviews didn’t reach 1,000. However, most of the positive Deel reviews are about its solid EoR and payroll solutions that make handling hiring and employee management processes easy for global businesses. Several users also appreciate the onboarding and account support that Deel offers through its customer success managers (CSMs). Those who left Deel payroll reviews like that its online platform provides visibility on all payments and comes with various currency options and salary withdrawal methods. They even highlighted its software’s ease of use, legal local contracts, and online onboarding tools as some of Deel’s best features. On the other hand, some reviewers said that Deel’s pricing can be a little high, especially if you have a large team. Others mentioned that its reporting tools aren’t robust and that its in-app chat support tool can be glitchy at times. Several users also commented that while you get good service from Deel’s CSMs, the quality of support you receive from its general customer service team is less than ideal. A few reviewers complained of having experienced poor after-sales service and encountering unresponsive support reps. At the time of publication, Deel reviews earned the following scores on popular user review sites: G2: 4.3 out of 5 based on more than 200 reviews Capterra: 3.7 out of 5 based on nearly 30 reviews Trustpilot: 4.8 out of 5 based on 1,700+ reviews How We Evaluated Deel We looked at the provider’s features (both HR and payroll) and payment options. We also considered ease of use, transparency in pricing, HR and compliance support, and customer support. Access to third-party integrations, employee benefits plans, and onboarding tools is also important. We even check the feedback that actual users posted on popular user review sites. Click through the tabs below for our full evaluation criteria: Bottom Line If you plan to expand business operations outside of the US and ramp up hiring to complete your global workforce, is a good option. Its EoR service removes the burden of handling global hiring, payroll, tax, benefits, and HR processes by yourself. Deel’s international payroll services also cover more than 150 countries, with the provider owning local entities in 80+ locations. And even if it lacks a legal entity in a country, its partner of 200+ local experts can guide you through the complexities of finding, recruiting, paying, and managing a global workforce. Sign up for a Deel plan today.
December 7, 2022
How to Do Payroll in Utah: What Every Employer Needs to Know
Doing payroll in Utah is more straightforward than in many states. Utah has a flat income tax, making it easy to compute the amounts you need to withhold from employee paychecks; however, it also has some specific HR laws you need to follow. Learning how to do payroll in Utah and calculating Utah payroll tax can be a fairly uncomplicated process if you follow the steps below. If you need help running your Utah payroll, consider using payroll software like . It files and pays your payroll taxes and covers any penalties you are charged if its reps make a mistake (it’ll cover your mistakes, too, if you opt for a premium plan). You can pay employees via direct deposit or check, and same-day payment options are available as well. Sign up for a free trial or discounted rate. Step-by-Step Guide to Running Payroll in Utah Here is a basic guide to running payroll in Utah. Step 1: Set up your business as an employer. New companies may need to access the federal Electronic Federal Tax Payment System (EFTPS) to create a new Federal Employer Identification Number (FEIN). Your FEIN is required to pay federal taxes. Step 2: Register your business with the State of Utah. If your business is new, you need to register on the Utah OneStop Online Business Registration System website, a division of Utah’s Department of Commerce. Any company that pays employees in Utah must also register with the Utah State Tax Commission. Step 3: Create your payroll process. If your business is new, you need to develop a payroll process from scratch. You’ll need to decide when you plan to pay employees, how often, and what payment methods you’ll offer. Step 4: Have employees fill out relevant forms. Your business must have every employee complete payroll forms during their onboarding process. Every employee must complete I-9 verification. New employees must also have a completed W-4 on file and direct deposit authorization if it applies. Step 5: Review and approve time sheets. To run payroll accurately, you need to collect time sheets several days in advance. Reviewing the time sheets from your nonexempt employees gives you time to speak with anyone who might have made mistakes. There are many ways to track employee time—some of which are free. Step 6: Calculate employee gross pay and taxes. Calculating Utah payroll by hand is not recommended. Tax calculations can become complex, and even innocent mistakes can cause costly fines and penalties. You can use payroll software, a calculator (use our free timecard calculator to do some basic time calculations), or even Excel (we have a free template). Learn more about how to calculate payroll if you need help. Step 7: Pay employee wages, benefits, and taxes. The best way to pay your employees is through direct deposit. But cash and paper checks are also options. Utah does not have a state minimum wage, so the federal minimum wage of $7.25 per hour applies. You can pay your federal and Utah state taxes online. If you use a benefits provider, it should work with you to make deductions simple, automatic, and electronic. Step 8: Save your payroll records. Keeping your company business records is good practice. Utah requires businesses to keep record of all hours worked and wages paid to each employee, including their name, address, and date of birth, for at least three years. This mirrors the Fair Labor Standards Act (FLSA) recordkeeping requirements. Step 9: File payroll taxes with the federal and state government. All Utah state taxes need to be paid to the applicable state agency on the schedule provided, usually quarterly, which you can do online at the Utah State Tax Commission website. To pay federal taxes, you can make those payments online using the EFTPS on one of the following two schedules: Monthly: When the IRS assigns you a monthly schedule, you need to deposit employment taxes on payments made during a calendar month by the 15th of the following month. Semiweekly: When the IRS assigns you a semiweekly schedule, you must deposit employment taxes for payments made Wednesday, Thursday, and Friday by the following Wednesday, and for payments made Saturday, Sunday, Monday, and Tuesday, by the following Friday. Please note that reporting schedules and depositing employment taxes are different. Regardless of the payment schedule you are on, you only report taxes quarterly on Form 941 or annually on Form 944. Step 10: Complete year-end payroll reports. Doing payroll in Utah requires more than just paying employees on a regular schedule. Every year, you will need to complete payroll reports, including all W-2 Forms and 1099 Forms. You must provide these forms to employees no later than Jan. 31 of the following year. Download our checklist to make sure you don’t miss any steps. Utah Payroll Laws, Taxes & Regulations Doing payroll in Utah will require that you calculate Utah payroll taxes and ensure compliance with all federal and state employment laws. To help you maintain compliance with payroll regulations, review Utah’s relevant regulations below. With few exceptions, most employers in the US must pay Federal Insurance Contributions Act (FICA) taxes. The current FICA tax rate for Social Security is 6.2% and 1.45% for Medicare. Both the employer and the employee will pay these taxes, each paying 7.65% for the combined Social Security and Medicare taxes. Utah Taxes Like most states, Utah has certain taxes that companies must pay and withhold from employee’s paychecks. Utah does not levy local taxes on employees. Income Taxes While calculating withholding and taxes for your employees by hand is not recommended, Utah makes payroll slightly easier for you by having a flat income tax. The current income tax rate for all Utah employees is 4.85%. Employer Unemployment Taxes All businesses in Utah must pay State Unemployment Tax Act (SUTA) taxes. The current wage base is $41,600 and rates range from 0.3% to 7.3%. This translates into a per-employee SUI tax cost of $125 up to $3,036 in 2022 ($41,600 wage base x 7.3%). Most new employers in Utah will pay a SUTA rate of 1.2%. Workers’ Compensation Utah requires every employer with one or more employees to carry workers’ compensation insurance. Workers’ compensation insurance provides benefits to employees who suffer on-the-job injuries and covers the cost of medical treatment and lost wages. Average cost is around 78 cents per every $100 of payroll you process. Utah Minimum Wage Utah follows the federal minimum wage of $7.25 per hour. For tipped employees, companies must pay at least $2.13 per hour, provided that their tips get them to the hourly minimum wage. If not, the company must make up the difference. Calculating Overtime Utah overtime rules follow the FLSA requirements, under which all employers must pay employees 1.5 times their regular hourly wage for hours worked over 40 in a workweek. Paying Employees Utah law requires you to pay nonsalaried employees at least twice per month. Your company can choose to pay employees more regularly but must keep your paydays consistent. Every company must also pay employees within 10 days after the end of the pay period. If the regularly scheduled payday falls on a weekend or holiday, you must pay your employees on the preceding workday. Utah has separate rules for salaried employees who earn a regular annual income. For employees that you pay an annual salary to, you can pay them just once per month, if you wish. You must pay these employees by the seventh day of the month following the month in which the wages were earned. Utah also allows employers to pay workers by one of the following methods: Cash Paper check Direct deposit, only if authorized by the employee in writing Payroll card, only if authorized by the employee in writing Pay Stub Laws You must provide employees with a pay stub on each regular payday. The pay stub can be paper or electronic and must show: The employee’s name Base rate of pay Dates for the pay period The number of hours worked Itemized deductions Total net pay to the employee Utah Paycheck Deductions You’re allowed to deduct wages from an employee’s paycheck for the following reasons: Cash shortages Broken, damaged, or destroyed company property Required tools and uniforms You may withhold additional wages, but only if the deductions meet one of the following conditions: Allowed by federal, state, or local law The employee provides written consent for the deduction For retirement and healthcare contributions Terminated Employees’ Final Paychecks When it comes to terminated employees, you may be required to pay their last paycheck at different times based on how the employment relationship ended. If an employee was fired, discharged, terminated, or laid off, you must pay the employee within 24 hours after their final workday. If an employee quits, resigns, or is suspended or resigned due to a labor dispute, you need to pay the employee on the next regular payday, or sooner. Utah HR Laws That Affect Payroll Utah has a few state-specific HR laws that you need to know. The state mostly follows federal guidelines, so if you are familiar with those, you should have no issues understanding the additional Utah HR laws. Utah New Hire Reporting Every employer in Utah must report new hires and any rehired employees to the Utah Department of Workforce Services within 20 days of their first day of work. This information is used to enforce child support orders and must include the employee’s name, address, and Social Security number. Meals and Breaks Employers are required by law to provide meal breaks of at least 30 minutes to employees under age 18 who are scheduled to work more than five consecutive hours. For employees 18 and older, you are not required to provide any meal or break periods. Breaks of less than 20 minutes must be paid, but breaks or meal periods over 30 minutes generally do not need to be paid. Utah Child Labor Laws Utah does not restrict the working hours or days of children aged 16 and 17. However, minors aged 14 and 15 can only work up to three hours on school days. On non-school days and when school is not in session, they can work up to eight hours per day and 40 hours per week. Check out our guide to hiring minors for more insight into federal regulations. Time Off and Leave Requirements For the most part, you’ll need to follow federal time off regulations, because Utah doesn’t require much beyond that. You will, however, need to ensure employees have time to vote. Click through the tabs below to see your time off requirements: Payroll Forms While Utah collects state income tax, it does not have its own state W-4. Employees should use the federal W-4. Utah has no other state payroll forms. Federal Payroll Forms Here is a complete list and location of all the federal payroll forms you should need. W-4 Form: Provides information on employee withholdings so you can properly calculate and withhold federal and state income taxes W-2 Form: Used to report total annual wages for each employee W-3 Form: Used to report total annual wages for all employees; summary form of W2 Form 940: To calculate and report unemployment taxes due to the IRS Form 941: Used to file quarterly income tax Form 944: Used to file annual income tax 1099 Forms: Provides information for non-employee contract work For a more detailed discussion of federal forms, check out our guide on the federal payroll forms you may need. Utah Payroll Tax Resources Utah State Tax Commission provides many forms, information on the latest laws and regulations, and other employer-specific information. Utah OneStop Online Business Registration has many great resources for new and existing businesses to help them navigate licensing, taxes, and employer requirements. Utah Labor Commission offers support and resources to help businesses ensure compliance with unemployment and workers’ compensation, plus other labor laws. Bottom Line Utah has a flat income tax but no local taxes. However, this doesn’t mean you should calculate your company’s payroll taxes by hand, as that could lead to costly errors. There are no state-specific payroll forms and fairly straightforward HR laws. Combined, this makes Utah one of the easiest states in which to run payroll.
December 6, 2022
Hiring Independent Contractors in 8 Simple Steps
Companies hiring independent contractors usually have short-term projects or part-time work that need to be completed in a specific time frame, or work requiring subject matter expertise. To hire independent contractors, you’ll identify the work that needs to be done and decide on the qualifications a contractor needs to perform the job successfully. Then, if you opt to post a job on a website, you should prepare a job description—make sure you note the job is for independent contractors only. Finally, compile a list of interested contractors and screen the top applicants. Cost is also a significant factor, so determining an acceptable contractor budget at the beginning of the process will prevent you from wasting time considering those who are outside your range. 1. Plan Contractor Projects Before you make any major decisions about hiring independent contractors, consider whether you really need them or if an employee would be a better fit. Sometimes employers are penalized for misclassifying employees as contractors. Take time to evaluate the project you need help with. Is it long term or short term? Can one contractor handle the job, or do you need multiple? Does the project require someone with advanced education or special certifications? Generally, the best work for contractors is temporary and doesn’t require years of company-specific experience. Contractors often operate as a business, whether a formal entity or sole proprietorship, and usually have multiple customers. So, if you have a long-term project that requires a full-time work schedule, you should consider whether an alternative option would be more feasible than using contract labor. Cost, expertise, and convenience are all important factors. 2. Determine Contractor Qualifications After verifying your need for a contractor and identifying the work you want performed, determine the qualifications you need in a contractor. Be sure to separate preferences from deal breakers. For instance, if you’re looking for a bookkeeper to “clean up your books” because you haven’t had the time to do it, consider whether you want the person to be certified or have a degree. Typically, bookkeeping certification would be a preference, while experience would be a requirement. 3. Write a Job Description Figuring out what you need and want in a contractor will help you create a solid job description that saves you time by primarily attracting your target candidates. It’s disappointing to sift through a list of contractors who can’t perform the work you have or just don’t meet the qualifications. This is why it’s important to be direct when writing your job description and clearly note you’re specifically looking for independent contractors. Here are the most important items you should include in a job description: Job details: Provide detail on what the project entails. Required credentials: If you require a degree, license, or other credentials, include it so contractors who don’t qualify won’t apply. State if it’s a preference rather than a requirement, so you don’t miss out on eligible candidates. Length of job: Estimate the length of time you expect the project to take. If you’re looking to build a long-term relationship over a series of projects, express this in the job description. Ideal contractor: It’d be helpful to spell out what your ideal contractor is like. You can list traits like adaptability, charisma, and so on. Company profile: Include a brief description of your company with details on its industry and clients. Pay: Some companies list the pay amount (either by hour or project) directly on the job description. Although pricing is an important detail that governs the owner-contractor relationship, it’s not always a good idea to include it in the job description. Instead, request quotes from the contractors you’re interested in; this leaves room to negotiate. If you’re interested in posting your contract work on a job board, consider . It offers the largest network of independent contractors, and you can put parameters on your jobs so that only top qualified candidates can apply. Additionally, you can post jobs for free on the site but you are subject to a 2.75% client fee when you pay your contractor. 4. Search for Contractor Candidates Once you know what your needs are and have your job description, you can begin searching for contractors. Deciding where to search sets the stage for this step, and it primarily depends on the type of work you have available. For instance, you’d look for bookkeepers, virtual assistants, and roofing contractors using different platforms. There are numerous avenues you can use to search, but you should take advantage of the internet as it’s convenient and offers a wide reach. 5. Compile Applicant List & Screen for Best Candidates As you proceed through the process of hiring a contractor, start compiling a list of eligible candidates. You should be able to eliminate some contractors before doing any major evaluation. Always refer to your qualification list and job description to keep you on track because it’s easy to become sidetracked when reviewing dozens of candidates. Be aware that some contractors will look great on paper but aren’t exactly what you need. They may have more qualifications than the job requires and hence exceed your budget. On the opposite end, you’ll find some deals that look very attractive financially, but the contractor’s experience may be questionable. Once you compile your list, filter it for the candidates that fit your profile of an “ideal contractor” for the job. If you struggle to find ideal candidates, screen for the next best. 6. Request Quotes From Each Contractor Once you know which contractors you’re willing to work with, you can hone in on pricing. By the time you reach this step, you’ll most likely already have insight into the amount each professional charges. It’s up to you whether you want to negotiate; you should wait until officially meeting with them before starting the process. Be cautious of quotes that are too high or low. Any quotes significantly outside of the general range could signal a red flag. Compare all prices and consider factors such as experience and contractor business structure before drawing any conclusions. Eliminate any contractors that don’t fit. 7. Interview Top Independent Contractor Applicants After receiving a few bids for the job, you’ll interview the best contractors and negotiate a price before making your final decision. Similar to scheduling a job interview, you should set up a meeting or call with the top independent contractor applicants. Three is a good number to consider, but add more if you want additional options. Use the meeting to ask questions and assess the contractors’ capabilities and compare your findings with the research you’ve already gathered. Ask questions and review attributes during the interview stage so you’re ready to make a decision shortly after. Those are great questions to ask. However, there are some questions and comments you should avoid: Are you able to come to our office from nine-to-five each day? We have a weekly staff meeting every Wednesday at 9 a.m. We’ll expect you to attend. You don’t need to send us an invoice; we’ll just pay you a regular salary with normal payroll runs. You’ll be reporting to X employee and they’ll conduct your performance reviews quarterly. Have you overseen employees before? This role will require you to manage two employees. All of these questions and comments blur or outright eliminate the line between an independent contractor and an employee. You don’t want to do that as it could be costly for your company. 8. Extend Offer & Prepare Independent Contractor Agreement You’ll need to decide which contractor you’ll hire and prepare to extend an offer. An offer to an independent contractor doesn’t come in the form of an offer letter as it would for an employee. Instead, you’ll prepare an independent contractor agreement that clearly describes the relationship between the parties, the scope of work that’s expected, the rate you’ll pay (only after receiving an invoice from the contractor), and any milestones or deliverables and their timeline. While you should speak with the contractor first to line up all these details, putting it in writing is important to protect both you and the independent contractor. This agreement will have legal consequences if you violate the terms so make sure you’re comfortable with the final version. For the contract to be legally binding, both you and the contractor must sign. It’s best not to begin working with any contractors until a fully executed (signed) contract is in place. Federal Laws on Hiring a Contractor One of the best parts about hiring independent contractors is the lack of extensive regulation. Hiring employees subjects employers to numerous laws, but working with contractors is much less complex. Depending on your state, you may have to report new contractors to a state agency. Your primary concern should be ensuring that your contractor is indeed a contractor and not an employee. You shouldn’t dictate how or when the contractor works, only what the final product should be. Penalties for Misclassifying Independent Contractors Penalties for not complying with federal laws can be costly. The IRS is very sensitive to contractor-employee misclassifications and will search for those occurrences when conducting audits. If the IRS discovers you misclassified any employees as contractors, the contractors are automatically reclassified and you may owe back payroll taxes (15.3% for Social Security and Medicare (FICA) and possibly 20% for income taxes) and penalties of $1,000 per misclassified worker; you’ll also be subject to paying the misclassified worker back overtime pay, if applicable. We should note that you could also get a year in prison. Be sure that you’re not setting your contractors’ work hours or controlling how they perform their work; otherwise, they should probably be employees. State Contractor Classification It’s also a good idea to check whether your state has specific contractor classification tests that you can follow to ensure you comply. Several states use the ABC test to determine if someone is really an independent contractor. The ABC test has three phases: Is the contractor free from the direction and control of the hiring entity? Is the contractor doing work that is outside the scope of the hiring entity’s business? Is the contractor customarily engaged in an independently established occupation, business, or trade that is the same as the work being performed? If you can answer “yes” to all three of these questions, you will pass the ABC test. The second one is often the most precarious for companies engaging independent contractors. Say your business provides accounting services to clients. You have four full-time accountants who provide these services and now you want to add an independent contractor accountant to supplement additional work for clients. You can’t. That new worker would be an employee because they don’t pass the second question. The following states use the ABC test. If your state isn’t listed, that doesn’t mean you’re free to classify however you like. Your state probably has very similar classification steps it will follow to determine whether a worker is an employee or an independent contractor. Also keep in mind that if you’re partnering with a remote independent contractor, the state laws where they live and work will apply. California Connecticut Delaware Illinois Indiana Massachusetts Nebraska Nevada New Hampshire New Jersey Vermont Washington West Virginia New Hire Reporting for Independent Contractors Federal law doesn’t require new hire reporting for contractors, but some states do. These states match the reports against their child support records to locate parents, establish a child support order, or enforce an existing order. All laws differ, so it’s best to check your state’s website for specifics. Here are the states that require businesses to report independent contractors with a link to the new hire reporting portal or other relevant site: Arizona California Colorado Connecticut Delaware Florida Iowa Maine Massachusetts Michigan Minnesota Nebraska New Hampshire New Jersey Ohio South Carolina Tennessee Texas Utah Virginia West Virginia Federal Laws on Paying Independent Contractors Generally, you aren’t required to withhold taxes from an independent contractor’s pay. They are obligated to pay their own contractor taxes. However, if you’re unable to gather their Social Security Number (SSN) or Tax Identification Number (TIN), you’ll need to withhold 24% from each payment to remit for taxes. The IRS requires you to collect your contractors’ identifying information, like name, SSN or TIN, and address (usually on Form W-9), at the time of hire so you can file the 1099 tax form at year-end with ease. 1099 reports all contractor earnings for the year. You’ll send a copy to each contractor, the IRS, and your state tax agency. This ensures the tax agencies are aware of who should be paying their own taxes. Bottom Line Hiring independent contractors requires analyzing the work you need to be completed so you can determine the best professional for the job. You’ll spend time researching different options and strive to choose the best one based on cost, ability, and ease of use. Understanding federal and state laws is also important so you avoid penalties and taxes.
December 6, 2022
Recruitment Management System: Small Business Guide
A recruitment management system (RMS) is a human resources tool or set of tools used to manage the process of recruiting, interviewing, and hiring new employees. Managing your recruitment process sounds simple enough but it requires constant monitoring and adjustments and compliance with employment laws to ensure it is fair and non-discriminatory. The right RMS can automate your process, from finding and engaging candidates to interviewing and making offers, reducing the load on you or your team and resulting in higher-quality hires. provides small businesses with an end-to-end recruitment management system. It can post jobs on numerous job boards and set up and manage your entire recruitment and selection process online in one portal, creating a seamless and efficient experience for both you and your applicants. How an RMS Fits Into Your Recruitment & Selection Process The type of recruitment management system you should use depends on how much hiring you plan to do and how often you plan to do it. A free job board and applicant tracking spreadsheet may be more appropriate for small businesses that are only hiring a couple of employees per year, whereas complete recruitment software works better for companies that are scaling rapidly. Let’s take a look at how an RMS works in the different steps of your recruitment process. Posting Jobs Posting jobs is tedious. To reach the maximum number of potential candidates, you need to post your open job on at least several of the major job boards. Doing this one by one will take valuable time and probably result in not posting on every job board, which could reduce the number of candidates who see your open job. Unless you work in an industry that utilizes an industry-specific job board, you're more likely to attract the best candidates if you make your job posting visible in multiple places. A recruitment management system like will automatically post your open job to numerous job boards at once. Additionally, it will allow you to create a company page where you can direct potential candidates to learn more about your company and see all of your open positions. A good RMS will also allow you to send recruiting emails to candidates who match the qualifications found in your job description and compile all of your candidates so you don’t have to bounce between multiple sites. Employment Application Even if you do not have a company job application form, there is still certain information you need to collect during the application process. Through your RMS, you can collect relevant information about every job candidate, including: Full name Complete address Phone and email Previous employment history During this stage of the candidate’s application, you can also ask specific questions. Be careful with some questions as asking certain questions about a candidate’s background or criminal history can be illegal, depending on the state in which your company operates or where the candidate lives. Not only can an RMS help you build the application process, but it can also alert you if a question you want to ask could be illegal. Applicant Screening When recruiting manually, you would need to review each candidate’s resume individually. You’ll need to match it to the job description and ensure they tick off the boxes you need for the role. This is a time-consuming process. An RMS does this matching automatically. Your system will screen candidates for you, only notifying you of those that match your open job best. This reduces the time you have to spend screening candidates and ensures that the candidates you review are of higher quality. Interview Scheduling Once your RMS narrows down your candidate pool for you, you need to review the highest-quality candidates. As you look through their resumes and applications, you may want to schedule interviews with some of them. Some recruitment software is capable of scheduling interviews for you. When you want to interview a candidate, you can select several dates and times that work for you and the system will offer those slots to the candidate. When the candidate selects one of those options, your RMS automatically books that time on your calendar, eliminating the back-and-forth required to set up an interview manually. If you’re interviewing multiple candidates, this is a massive time saver. Bottom Line A strong recruitment and selection process is key to successful hiring for any small business, particularly in this competitive environment. Having the right recruitment management system such as , speeds up your hiring process and reduces the manual labor you have put in for each new open position. An RMS will also help your company remain legally compliant with confusing and complex employment laws.
December 6, 2022
Parallel Testing Your Payroll Software in 8 Steps
Parallel testing is the process of running the same payroll in two payroll systems to ensure that both have the same outputs. That means all the information regarding employee net pay, taxes (including year-to-date totals), and withheld benefit premiums reported in the new software aligns with what is reported in the old system. Parallel payroll testing—which involves documenting your current process, running payroll in a test environment, and evaluating the results, among other steps—ensures your new system is set up correctly, so your first payroll will be correct. Step 1: Document Your Current Payroll Process You should document your payroll process from when your previous payroll closes until your current payroll closes. One mistake that happens during testing is only examining the duties of your payroll processor(s). Everything that touches the payroll system needs to be tested, including how benefit elections are entered, along with compensation changes, tax withholdings, employee demographic information, paid time off, and anything else related to your payroll process. This is especially the case if your payroll system is also your HR system. Ideally, this is an ongoing step, something you update as your payroll processes change. If you don’t have all this documented before changing payroll providers, it may take days or weeks to put this together. Step 2: Gather the Necessary People Similar to the first step, everybody with a role to play in the payroll process (benefits, HR, and payroll) needs to be involved in the parallel payroll testing process. At most small businesses, it may be a small team, so be sure to include the backups as well. The individuals involved in the overall payroll process will have the best understanding of a normal payroll process, and they can bring up the items that give them the most trouble. This step should be done in coordination with your account representative at your new payroll provider. Have everyone sit at their own computer so they can walk through each step, clicking and checking items themselves. This will help them learn the process, spot any potential issues, and raise relevant questions. Step 3: Ask for a Payroll Test Environment Most payroll software providers should be able to provide you with the “sandbox,” which is an environment that mirrors the look and feel of payroll software but is used only for learning and testing purposes. It’s essentially a demo setup of your company account. You can practice running as many payrolls as you like without any impact on your actual company books. Step 4: Process Payroll as Normal This can be done in two ways: You can process your normal payroll and your test payroll simultaneously. You can process your test payroll after your normal payroll is finalized. Many companies do not have the time and resources to process simultaneously, so they test payroll the week after the normal payroll processing is completed. This includes entering personnel changes (e.g., new hires and terminations) and pay period items (e.g., hours worked and bonuses), as well as mirroring your payroll review process (e.g., checks paid outside of payroll and hourly employees’ timecards). We recommend, if you have the resources, to run both payroll processes simultaneously with your old payroll system as the live, or real, payroll. Running these together will ensure that each step is accurate and final payroll numbers are identical. Using your old payroll system as the live payroll also ensures that if there are any issues with your new system, you still have access to the old system if you need to run additional payrolls. Step 5: Gather Reports Both payroll software (current and future) should be able to provide you with payroll reports. These reports should indicate payroll totals, individual results for each employee, and sample pay stubs. Try to download reports that are in Excel format and a visually friendly format such as a PDF. Step 6: Review Results in Both Software We suggest beginning with your payroll total summary, which includes your gross payroll, net payroll, and total tax amounts. Testing your payroll outputs is crucial. Make sure employee time off is calculated and paid correctly—same for overtime. Make sure retirement fund contributions are correct and taxes are accurate. Also, review the general ledger, line by line, to ensure each output shows the exact same numbers. If those amounts look correct, you can be fairly certain that the testing was successful. We still recommend spot-checking several employees’ pay stubs to confirm your previous results. If the totals do not match, review the category totals to see which ones are not the same. Once you determine the categories, you can go into the employee details to see which specific cases are different. This information should be investigated and discussed with the new payroll provider if you can’t resolve it. Some discrepancies are due to the input information not matching, user error, or a different calculation process for the payroll service (we go into more detail on errors and discrepancies below). Once you and your provider figure out the root cause, you need to document it, decide how to account for it moving forward, and retest. Step 7: Redo Steps 4–6 for Another Payroll Cycle (If Not Two) Testing multiple payroll cycles ensures results are correct and accounts for any infrequent items (such as commission payments and monthly benefit deductions) before completely switching to the new software. Step 8: Ask for Help If your payroll software provider offers implementation services, reach out to your specialist and see if they can be on-call, or schedule a call on your normal payroll processing date just in case. We do not recommend skipping this step. Your new payroll system will have unique steps and a different user interface than you’re used to. Testing with the help of someone who’s experienced in the system allows you to quickly find items and reports, while also showing you the exact steps you should take for each process. Never be afraid to ask for help even after you’ve been using the system for a long time. Payroll is one of the most important functions of your business and it’s crucial that you get it right every time. Need step-by-step instructions on changing payroll providers? Check out our guide on how to switch payroll providers. Identifying Common Errors & Handling Discrepancies Here are some of the most common errors you will encounter moving to a new payroll system and tips on handling them: Bottom Line Redundancy is a key to business efficiency. Payroll software is no different. Parallel payroll testing is an integral part of ensuring that your payroll software change goes smoothly. Gather the right people for testing, load the appropriate information into the new payroll system, be careful to follow your normal payroll process, and have a detailed plan of comparing both payrolls using payroll reports. Through this, you will have minimal disruption when the change is finalized. Make no mistake, this is a time-consuming and labor-intensive process, but it’s also necessary to ensure absolute accuracy with your payroll. You want your employees to get paid correctly and you want your company to avoid IRS fines and penalties.