For many business owners, the idea of adding ITIN (Individual Taxpayer Identification Number) workers to their payroll might seem like uncharted territory. And you might be wondering, are the benefits of adding ITIN workers to your payroll worth it?
The short answer is yes.
Let's dive into how adding ITIN workers to your payroll can keep you in line with the law, save you from potential financial headaches, and even solve some of the cash flow challenges you might be facing.
What Are The Benefits Of Adding ITIN Workers to Your Payroll?
There are four big benefits for your workers to get an ITIN number and for you to add them to your payroll:
1. Payroll Tax Compliance
Having workers with ITIN numbers allows you to pay them on payroll and comply with all the payroll tax regulations—which helps you minimize your financial risk related to potential audits from all the federal and state government agencies.
2. Department of Labor ("DOL") Compliance
Additionally, paying your workers on-the-books as ITIN employees rather than off-the-books, also helps you minimize your financial and compliance risk related to potential investigations from both the federal DOL and your state DOL. 3.
3. Workers Compensation Compliance
Another important benefit to you is if your worker is injured while on the job, they’ll have insurance coverage from your workers compensation policy. Otherwise, you’d be stuck and have to pay for these medical costs out-of-pocket.
Additionally, you will be in compliance with the workers' comp laws and avoid stiff fines and penalties (up to $1000 per day).
4. Cash Is Not King Anymore
And last but not least, most employers don’t have enough cash on hand every week to pay their workers off-the-books. This is a real problem these days and most employers would prefer not having to pay their workers with cash.
And that's it!
Wondering how you can add your ITIN workers to your payroll? Learn more about Baron Payroll's ITIN Service here.
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