Because so many people are told by their current payroll company that they cannot pay their employees with Individual Taxpayer Identification Numbers (ITINs) on their payroll, we get this question all the time:
“Can I use one payroll provider for our regular employees and a different payroll company for our ITIN workers?”
And the answer is…
It’s a bad idea. It’s better to have one payroll for all of your regular employees and ITIN workers rather than two.
In this article, we will explore the challenges associated with managing ITIN workers' payroll separately from your main workforce and why it's better to consolidate payroll services under one provider.
But first...
Do You Want to Put Your ITIN Workers on Your Payroll?
- Have you been told it's not possible?
- Have you been told it's not legal?
- Are you worried about the DOL?
- Are you worried about your ITIN workers getting injured and not being covered by workers comp?
If so, then we can help.
At Baron Payroll, we are experts at managing the complexities of adding your ITIN workers to payroll, and we’ve been doing this successfully for over 20 years.
The best part is... we’ve included our ITIN package for FREE with our payroll services.
And that's it!
Now that you know we can help, let's get into the meat and potatoes.
Why Is Adding ITIN Workers to Payroll All-or-Nothing?
When you file payroll tax returns, it must be done in one batch and sent to both federal and state or local governments.
This requirement makes it challenging to have one payroll provider handle regular employees while another manages ITIN workers' payroll.
And at the end of each quarter, someone within your organization would need to manually combine these two sets of tax returns and file them as one.
The consolidation process can be time-consuming and prone to errors.
So, due to this complication, many companies opt to let a single provider, like Baron Payroll, process payroll for all their employees, including ITIN workers.
What are the Benefits of Unified Payroll Processing?
There are several advantages to consolidating your payroll services:
Simplified Communication:
Dealing with a single payroll provider reduces communication challenges and ensures smoother coordination between your company and the service provider.
Expertise:
Baron Payroll has experience in handling ITIN worker payroll, ensuring compliance with tax regulations, and minimizing errors.
Efficiency:
A unified system simplifies the payroll process, reduces administrative overhead, and minimizes the risk of costly mistakes.
Tax Deposit Compliance:
When you have a single provider managing your payroll, they can accurately calculate and submit your payroll tax deposits in a timely manner. This is crucial, especially when dealing with the federal and state government's specific liability limits for tax deposits.
Year-End Filings:
Having a single payroll provider ensures that your year-end filings are accurate and submitted promptly, avoiding penalties or legal issues.
The Complexities of Payroll Taxes
Beyond the challenges of consolidating tax filings, there is a deeper complexity regarding payroll taxes.
For instance, if your tax liability exceeds $100,000, federal law mandates that you make the deposit within one day. Similarly, many states have their own rules based on liability limits.
If Baron Payroll is not aware of your exact liability, we cannot ensure timely tax deposits throughout the quarter.
All in all, while some businesses might attempt to manage ITIN workers' payroll separately from their primary workforce, the complexities of payroll tax filings, tax deposit compliance, and year-end reporting often make this approach more trouble than it's worth.
In practice, the vast majority of companies find it more efficient, accurate, and compliant to use a single payroll provider to handle all aspects of their payroll.
In the end, it's not just about convenience but also about ensuring the financial stability and legal compliance of your business.
If you're considering adding ITIN workers to your payroll, use our instant price calculator and get detailed pricing now without talking to a salesperson.
Do you want to add your ITIN workers to your payroll? Check out our ITIN package that’s included for FREE with our payroll services.
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