Anyone in HR knows how difficult it can be to provide effective employee management. It’s a challenge even when you’re working in the same office building, in the same country.
Global companies have an even larger challenge. They could have employees in many different markets, and those employees may have varying expectations about the workplace culture. The legal frameworks and employer responsibilities can also vary drastically. Add in the fact that many of these employees are working remotely or in satellite offices, and you have your work cut out for you.
It’s one of the many reasons global companies often choose to work with a professional employer organization (PEO). Here’s how a PEO could help your global firm manage your US employees more effectively.
The Legal Aspects of Employee Management
One of the most important ways a PEO helps global companies manage employees in the United States is by navigating the legal framework around employment.
The US is a particularly complex situation because there are multiple levels of government. Federal laws, state laws, and even local laws may apply to employment arrangements at your company.
A PEO could help in this arena due to their experience and expertise with US laws. They might be able to give you expert advice and help you ensure compliance.
Help Finding the Right People
Another advantage of the PEO’s experience is their knowledge of the labour market. While you’ll remain in control of hiring decisions, the PEO can offer you tips and advice on every aspect of the hiring process.
This could include information about job hot spots and areas with talent shortages. They may be able to advise you on legal aspects of the hiring process, such as how to avoid discrimination in interview questions. New York City, for example, has banned questions about past salary.
Handling Payroll Is Easier with a PEO
One of the toughest parts of employee management is handling payroll. The US payroll framework isn’t an easy one to master either. There are multiple levels of government, all of them expecting different tax withholdings.
You’ll need to withhold both federal and state taxes, as well as FICA funds for Medicare and Social Security. Even local governments may require you to pay taxes to support schools, public transit, and other local infrastructure.
There are other aspects of payroll to consider as well. Overtime pay is one of them. Minimum wage might be another.
If you’re not familiar with the rules, then collecting the right amounts and remitting them on the right schedule can be difficult. Mistakes in payroll add up, resulting in penalties and additional expenses for global companies.
A PEO can help. By providing payroll services, they’ll ensure you’re following the rules and remitting all your withholdings on time.
Other Areas of Compliance
There are many other areas of employment where compliance is important. Record-keeping is a big one. How long do you need to keep employee information on file? Which records do you need to keep? You must also evaluate how your record-keeping aligns with data and data security regulations.
Another concern might be workers’ compensation and other forms of insurance, which you may be required to have. Different states have different regulations.
Even employee classification is a growing area of concern for global companies looking to employ people in the United States.
An experienced PEO can help you navigate all of these ins and outs.
Get the Helping Hand You Need
As demonstrated, a PEO can assist global companies with US employee management in a number of different ways. If you need help managing this aspect of your US operations, don’t hesitate to reach out to The Payroll Edge.