How to Complete Payroll Compliance Automatically

According to recent stats, 53% of companies have been penalized for payroll noncompliance in the last five years.

And over 30% of small business owners admitted to having made at least one payroll mistake in the past year.

For you…instead of being one of the companies that gets fined for simple, preventable mistakes, you should take advantage of payrolling solution that automatically handles your company's compliance.

With Rise, you can automate your payroll compliance for each of your individual contractors, whether they're foreign or domestic.

First, let's take a quick look at the mistakes you want to avoid:

Most Common Payroll Compliance Mistakes

Inaccurate Payroll Calculations:

• Errors in calculating overtime, holiday pay, bonuses, and other wage components can result in underpayment or overpayment, leading to compliance issues. This includes failing to factor in the correct regular rate of pay when calculating overtime.

Failure to Withhold Proper Taxes:

• Not withholding the correct amount of federal, state, and local taxes, including Social Security, Medicare, and unemployment taxes, can result in significant fines. Businesses must stay updated on tax rates and ensure accurate deductions.

Missing Payroll Deadlines:

• Delaying payroll can violate state laws regarding timely wage payments, potentially leading to fines and employee dissatisfaction. It's essential to adhere to the payroll schedule and state-specific wage payment laws.

Inadequate Record Keeping:

• Failure to maintain accurate and complete payroll records can lead to compliance violations. Records should include timekeeping, wage calculations, employee classifications, tax filings, and other relevant documentation for the required retention period.

Not Complying with Wage and Hour Laws:

• Non-compliance with federal and state minimum wage laws, overtime rules, and meal/rest break regulations can result in legal action. Staying updated with FLSA requirements and state-specific labor laws is crucial.

Overlooking State and Local Regulations:

• Payroll compliance is not only a federal matter but also involves state and local regulations. Failing to comply with varying state and local payroll tax rates, wage laws, and other specific requirements can result in fines.

Failure to Provide Proper Documentation:

• Not issuing required forms like W-2s or 1099s on time, or providing inaccurate information on these forms, can lead to IRS penalties. Timely and accurate reporting is essential for compliance.

Neglecting to Update Payroll Practices:

• Laws and regulations change frequently. Failing to stay updated with new compliance requirements or not regularly reviewing payroll processes can result in unintentional violations.

Luckily, all of these issues can be avoided by partnering with Rise below.

Related: Global Payroll - What You Need To Know

How to Automate Payroll Compliance

STEP 1: Create a Business Account on Rise

To create a business account on Riseworks.io, visit the website and provide essential company details, including your business name, address, and contact information.

Once you complete the registration, you will need to undergo a verification process to confirm the security and legitimacy of your account, which may require you to submit additional documents or information related to your business.

STEP 2: Onboard Your Contractors Compliantly

To onboard your contractors onto the Rise platform, simply send them an email invitation.

Once they accept, they will quickly complete the onboarding process, which includes:

• Signing Service Agreements
• Identity Verification
• Know Your Customer (KYC) Checks
• Anti-Money Laundering (AML) Checks
• Liveness Check and Face Match

Each contractor will also receive a unique ID and the ability to select their preferred payment methods for withdrawals.

Rise also automatically issues 1099 and W9 or W8Ben forms directly with the contractors to ensure accurate and timely reporting.

STEP 3: Fund Your Payroll

Rise gives employers the unique ability to fund payroll in the local currency of their choice, so that global employers are not limited by local banking systems.

Once the funds are available, you can easily allocate them to your payroll needs within the Rise platform, setting up automated payments in either fiat or cryptocurrency according to your payroll setup.

Since your team is made of 1099 independent contractors instead of W-2 employees, you won't have to worry about specific payroll deadlines, but with Rise you still have plenty of flexibility with payment schedules.

STEP 4: Set Up Payment Schedules

Within the Rise platform, you have the ability to create payment schedules tailored to your business needs, whether that be weekly, bi-weekly, monthly, or at custom intervals.

This adaptability helps you organize payroll distributions with your company's cash flow and the expectations of your contractors.

Additionally, Rise allows for the automation of these payments, ensuring that contractors receive their earnings punctually and consistently, without requiring manual input.

This feature not only reduces administrative tasks but also enhances the accuracy of payments.

STEP 5: Contractors Withdraw in Their Preferred Currency

Contractors can withdraw their earnings in their chosen currency, whether it's their local currency or various cryptocurrencies, directly from their Rise wallet.

This feature caters to the diverse requirements of a global workforce, allowing for easy conversion and transfer of funds to their personal accounts without intermediaries.

Avoid Payroll Compliance Mistakes

As you can see, after joining Rise and onboarding your contractors to the platform, your payroll compliance worries are gone as everything is now automated.

Taxes, proper documentation, accurate record keeping, and payroll are all handled within the platform for simplicity.

We also happen to have the lowest fees compared to other top payroll solutions.

Get started today - visit Rise and schedule a demo.

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