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Itching For Something New? These States Offer Relocation Incentives

CMMA Blog

Do you ever get a little antsy about your life and find yourself wanting to change careers, remodel your house, or even cut bangs? In certain ways, it’s getting easier than ever to scratch that itch by getting a change of scenery without having to establish a new career. Between the increase number of self-employed folks and those with traditional roles that have recently turned remote, people are working from home in record numbers! This study predicts that the trend will only continue, with almost a quarter of the American workforce working remotely within two years. While some enjoy the traditional office environment, this study shows that 60% of employees find an out-of-office work life aspirational. That, in combination with the 46% of workers looking to change jobs in the coming year means a lot of us might be spending some time daydreaming on Zillow. Some states are willing to put up some cash to get you to consider making their location home.

3 States That Will Pay You to Relocate

The requirements vary a bit from place to place and you’ll need to make sure you qualify. For example, you may need to bring your own remote job and stick around for a minimum amount of time. Their incentives range from straight up cash to housing assistance and even office space.  Whatever you’re looking for, there might be something here to help you with a new start.

Vermont

If you’re ready to brave mud season and get a good dose of their famous Fall colors just heading out to the supermarket, consider Vermont. There, you could get a $7,500 grant if you’re selected for their relocation incentive program .

Iowa

If you could use some Midwestern hospitality in your life, head over to Newton, Iowa, where you’ll get big-time support buying a home if you qualify for their housing initiative  (rhubarb not included).

Oklahoma

You’ll be blown away by Oklahoma’s incentives. Duncan offers $4,000 to new arrivals through its talent relocation initiative  while Tulsa is luring folks with $10,000, free work desk space, and more with their Tulsa Remote program.

The Bottom Line

If you’re among the many folks looking for a change, you may as well consider the states that are incentivizing folks to bring their talents (and their remote incomes) to their locations.

The post Itching For Something New? These States Offer Relocation Incentives appeared first on PayReel .

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1099-K Requirements Are Changing: Here’s What You Need to Know

CMMA Blog

The American Rescue Plan Act of 2021 changed the way businesses report income from payment cards and third party network transactions such as Venmo and CashApp.

Here’s What You Need to Know

Which Transactions Qualify?

Any payment after December 31st, 2021 is subject to the new rules, which indicate that a threshold of $600 in aggregate payments (with no minimum transaction requirement) will trigger the need for a 1099-K. Since it only applies to third-party network transactions for the provision of ‘goods or services,’ personal transfers/gifts and reimbursements do not qualify. The policy does not represent a change to the taxability of income, according to a release  from the IRS, which notes that “All income, including from part-time work, side jobs or the sale of goods is still taxable.”

While this form applies only to business transactions, it’s possible to mistakenly receive a 1099-K for a non-business transaction. If this happens, you can contact the issuer directly to address the error.

Tips to Make Tax-Time Easier

1099-K payments belong on a taxpayer’s Schedule C along with business expenses/deductions. Keep all your personal and business transactions separate from each other, including 1099-K earnings.  Keeping separate banking accounts and credit cards will make tax time a lot easier. This, along with keeping careful records and maintaining receipts, is also beneficial should you ever face an audit. Having transactions separated will keep you from breaking your brain trying to retroactively parse out expenses on your credit card statements. Credit card statements are not considered sufficient records to the IRS. To that end, keep receipts for any business expenses you plan to deduct.

The Bottom Line

The threshold has changed and you may be seeing a 1099-K that you weren’t expecting. Report it properly and you’ll be good to go!

The post 1099-K Requirements Are Changing: Here’s What You Need to Know appeared first on PayReel .

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Why Use an Employer of Record?

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Are you considering using an employer of record to manage your contingent staffing requirements? There are many benefits to using an employer of record for your business, so here are some things to consider.

What is an Employer of Record? 

An employer of record is a company that acts as the official employer for an employee, handling all payroll and employment-related matters. This includes hiring, terminating, providing benefits, and other HR tasks. The employer of record acts as a middleman between the employee and their actual employer. They are usually used by companies who want to outsource the HR, compliance, and legal aspects of employing some of their contingent workforces.

What are the Benefits of Using an Employer of Record?

Using an employer of record can be a great way to expand your workforce simply. With the right partner, you can focus on what you do best and leave the employment details to them. Let’s break down why you should use an employer of record like Maslow Media.

1. An employer of record can help you navigate the complex world of employment laws.

This is one of the most significant benefits of using an employer of record. There are many Federal, State, and Local employment laws to comply with, and it can be challenging to keep up with them. An employer of record takes on this responsibility and can provide your organization with compliance and legal protection when employing your contingent workforce. In addition to tax laws, an Employer of Record assists you in correctly classifying your contingent workforce. 

2. An employer of record can help you hire talent anywhere in the country

As companies leverage a more remote workforce strategy, an employer of record can help with onboarding and offboarding your contingent labor. Leveraging an EOR eliminates the requirement for your company to establish state withholding and unemployment tax accounts for your contingent workforce working in a state not already active for your business. This eliminates the need for quarterly and year-end payroll tax filings for individuals processed through an EOR.

3. An employer of record can help you save money on payroll and benefits administration.

Another benefit of using an employer of record is that they can help you save money on payroll and benefits costs. The administration of payroll and benefits can be time-consuming. By outsourcing these requirements, your organization can save money while freeing up more time to focus on the company’s goals and objectives. 

What are the Responsibilities of an Employer of Record?

The employer of record has many responsibilities when working with a business. This ensures that every aspect of the company runs smoothly. Here are some duties that an employer of record has…

  • Ensuring compliance with local labor laws
  • Onboarding, offboarding, and managing employee relationships by applicable regulations
  • Processing payroll and providing benefits to employees
  • Handling all paperwork related to taxes, workers’ compensation, and other employment-related matters
  • Maintaining accurate records of all employee data and activities
  • Ensuring that all employees are paid on time with correct wages and deductions

When Should a Business Use an Employer of Record?

When it comes to managing payroll, human resources, and benefits, outsourcing the process to an employer of record can be highly beneficial for businesses. By choosing to work with an employer of record, companies can save time and money while enjoying the financial benefits of reduced overhead costs. Below are some indicators a business might need an employer of record…

  • When a company wants to ensure accurate recordkeeping and reporting of employee data and activities
  • When a company is unsure of the state and local labor laws and regulations in states, it is seeking to employ its contingent workforce and needs assistance staying compliant
  • When a business needs to save time and money by streamlining its payroll process
  • When a company wishes to reduce overhead costs related to managing HR tasks internally

What are Some Other Solutions for an Employer of Record?

Some alternative solutions to an employer of record include… 

  • Hiring a consultant or independent contractor to manage all HR tasks, including payroll and employment law matters
  • Establishing a subsidiary company in another state to hire employees and handle related HR tasks
  • Hiring an internal team of experts to manage the company’s HR tasks and employment law issues
  • Using an integrated HR software solution that simplifies payroll processing and other related tasks
  • Working with lawyers specializing in labor law to ensure the company complies with all applicable regulations. 

These other solutions can be costly to an organization and are great reasons to consider using an employer of record. They can help you save money on payroll and benefits costs, manage employee records, stay compliant with employment laws, reduce liability risk, focus on your business, and save time. If you’re looking for a way to simplify your human resources tasks, Maslow Media Group may be the perfect solution for you! Contact Maslow Media Group today! 

 

The post Why Use an Employer of Record? appeared first on Maslow Media.

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Do You Engage Independent Contractors? The States Where it’s Riskiest And What You Can do About it

CMMA Blog

No matter where you are, engaging independent contractors comes with some risk to your business. You need to be ready to abide by a zillion (give or take) laws and regulations to make sure you stay compliant and in good standing with state and federal rules and regulations. In any of the high-risk states, it’s important to take extra care to protect your business from the associated liability.

Where is it Riskiest to Engage Independent Contractors?

California tops the list of risky states for engaging independent contractors. The laws there are never as simple as they seem at first blush and the stakes for violations are high. California is considered a bit of a trendsetter in employment laws so even if you don’t have workers there, the effects can reach your own states. In addition to the Golden state, Connecticut, Washington, Oregon, Indiana, Illinois, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Washington, and Wisconsin are all considered the riskiest places to engage independent contractors.

What Makes a State High Risk?

Laws around documentation and classification exist everywhere, but wherever they are more complicated, the risk for engaging contractors increases. On top of that, the regulations change often and, in some cases, they even contradict each other. Yikes. This makes guarding against the major concerns (including audits, classification, and overall compliance) trickier. The good news is that it’s not impossible. Businesses without an internal team/human resources department that is equipped to address those unique needs should partner with a company that specializes in handling them and being proactive about changes as they happen. 

Misclassification/Compliance Concerns

While it’s usually the major lawsuits against uber-sized businesses (like, ahem, Uber), many smaller companies misclassify workers without even realizing it. There is not a standard, universal, objective test to determine whether a worker should be classified as an independent contractor or an employee. In addition, each state has the power to determine some of its own rules. So not only is it complicated, but the stakes for misclassification are quite high. Violations can result in hefty fines, back taxes with interest, and lawsuits.  

Audits

Audits don’t care if your mistake is intentional or innocent and they are incredibly inconvenient either way. Being sloppy about classifying workers or casual about documentation is one of the easiest ways to end up on the government’s radar. Businesses should have an airtight process–from the up-front paperwork all the way through payroll– designed to ensure workers are correctly classified and that they receive the corresponding benefits and accurate pay. 

Now What?

For companies without an internal team equipped to handle the issues, engaging a partner that addresses the concerns related to engaging workers in high-risk states is a slam dunk.

Here at PayReel, classification and compliance matters are at the core of our business. As such, we’re continually improving our system with a defined classification process that takes into account federal, state and agency rules and includes a checks and balances process to ensure that the chosen classification has a solid precedent. We take compliance seriously on your behalf! Contact us if you want to see if a partner could make your business better or your life easier. 

 

 

The post Do You Engage Independent Contractors? The States Where it’s Riskiest And What You Can do About it appeared first on PayReel .

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