• ABOUT US
• SERVICES
• WE'RE GLAD YOU ASKED
• PRESS ROOM

• Payroll, liability, and risk….oh my! The moment you become and employer, you are now responsible for payroll taxes, benefits, retirement plans, hiring, firing and the list goes on the moment you become an employer.
• Employees are your biggest asset but also your biggest liability.
• Your business is growing, production is at its peak and you find yourself needing help. Congratulations! This is where every business strives to be!
• Your administrative burden of having employees will grow right along with the business! You now have to deal with hundreds of statutes, regulations and requirements placed on every employer by federal, state and local government.




Employer Responsibilities:

• Benefits compliance
• Wage & hour
• Employee classifications ( exempt v non-exempt)
• Employee classifications (common law v indpendent contractor
• Pension Plan compliance
• Payroll and payroll tax compliance
• Payroll records and files
• Tax entity
• Human Resource compliance
• Recruiting/ hiring
• Performance management
• Claims and risk management

This can be a seamless transition with EmployShare guiding you every step of the way. We are your human resource administrator with turnkey solutions.

• You may believe that hiring an employee and classifying them as an idependent contractor (paying them using a 1099) is best and saves you money. Be Careful! The regulations on 1099 contractors vs. W2 employees is the hot topic in court cases today and with one wrong classification you could find yourself in hot water with the IRS, State Departments of Revenue, State Departments of Labor and Workers Compensation Bureaus.
• IRS agents are very motivated to make sure business owners hiring contractors comply with the requirements established in Internal Revenue procedures and publications.
• There is a fine line between employee classification and, in most cases, W2 employment is the best choice for your staffing needs.
• If the IRS finds you non-compliant, you are looking at fines, penalties and back taxes that can put a company out of business.
• Take a look at the ramifications for misclassification:




Liability for failing to deduct and pay taxes – Section 3509

• 1.5% of wages paid to the employee or independent contractor
• 20% of the employee’s share of FICA
• 100% of the employer’s share of FICA
• 100% of the FUTA
• The first two fines are daoubled for ailure to file Form 1099
• $50 minimum fine for failure to file W2 or 1099 form
• 25% of the unpaid tax liability for failure to file quarterly returns
• .5% of the unpaid tax liability for each month up to 25% for failure to pay taxes
• Section 3509 does not apply when the Employer intentionally disregarded rerporting rules. This is referred to as a full rate adjustment. The IRS will attempt to collect 20% of the wages and withholding and 100% of the FICA due – both the employer’s and employee’s share.



Liability under Section 3402(d)

• If the employee fails to pay taxes, the employer is ot relieve of its liability for any penalties or additions.



Liability under Section 6672 Personal amounts owed.

• The IRS may collect any amounts due from any person who effectively controls the financies of the business entity. Under this section a 100% penalty may be imposed where the employer had no reasonable basis for believing that withholding was not required.



Liability under Section 7202

• Willful failure to collect or thruthfully account for, or pay taxes is a felony and subject to a fine up to $10,000 and/or 5 years in prison.



State Tax Liabilities and Penalties:

• Penalties vary from state to state
• If due to fraudulent intent to evade tax, - 1005 of the unpaid tax plus fines and penalties



Workers’ Compensation Liabilities

• Workers’ compensation penalties vary from state to state
• Many states charge $1,000 to $1,500 per day for every day you do not have workers’ compensation insurance for an employee
• Misclassified employees example: 1099 should be W2 and employee was on your staff for 1 year – penalty willl range from $365,000 to $547,500. There is no safe harbor.



State Unemployment Taxes (SUTA)

• You will be liable for unpaid tax, fines and penalties as specified by the state.

Stay compliant with EmployShare. Let us limit your risk and liability by classifying your employees.

• S- Corps and LLC’s with S-Corp elections often offer great tax advantages and reduced liability to the owner so make sure you are getting the most bang for your buck.
• One of the quickest ways to ensure you are audited as an S-Corporation is to file a corporate tax return that does not reflect "Compensation of Officers."
• It is assumed by the IRS that no one works for free, and the IRS has said that officers of an S corporation must receive wages.
• As an owner-employee of the S-Corporation, you must pay yourself a “reasonable amount” salary, and pay payroll taxes on your salary, according to the IRS.




S-Corp advantages of being on payroll through EmployShare

• No administrative cost of cafeteria plan through ES
• Able to adopt EmployShare’s retirement plan (low administrative costs)
• Officer can participate in multiple employer cafeteria plan and flexible spending arrangements.
• No self employment tax
• ES responsible for all tax payments (no more filings needed)


• The S corporation is often more appealing to the small business owner because the S corporation provides attractive tax advantages and still provides the owner with the limited liability protection. With S-corp taxation status, there is just one level of federal tax to pay and you eliminate being “double taxed”.
• Learn more about the tax advantages and liability reduction gained from an S-corp or LLC with S-corp election though EmployShare.

Remember the old expression: “So sue me”? This is something you will never hear a small business owner repeat. But, in Local, State and Federal Courts, employee class action suits have increased over 72% since 2007, so exactly are we saying?

• You don’t want to make your business more vulnerable to a lawsuit then it need be. The most important thing to remember is to be proactive and not reactive to a situation. It is critical to comply with all applicable federal and state laws, implement handbooks, employment agreements and to have policies and procedures in place.
• Whether your business is large or small, no company is immune from employment related lawsuits. Today, businesses are realizing that they are at risk to these types of lawsuits from the employee screening process through the exit interview. Employers are facing significant liability when making personnel decisions. Even if a lawsuit has no grounds; the costs associated with defending these suits can be overwhelming…both in time and money. Employer Practices Liability Insurance helps to provide protection for an employer against claims made by employees, former employees, or potential employees.
• Did you know that you can legally form a corporate entity to manage your practice? Choosing the right business entity can provide you a significant reduction in liability and risk as well as tax savings, which will improve your bottom line. Many of the personal liabilities you have such as the liability for employees becomes a corporate liability. You have created an extra layer or veil between you and these liabilities.
• EmployShare will work with you to form the right entity for your business. Protecting your assets is vital and EmployShare will show you how.

We hear this all the time: “I am such a small organization with only one employee. I don’t need all of your services!” Unless this employee is a relative, you may have more risk, than a business with 20 employees.

• Think about this for a minute. Your one employee knows everything about your company. He or she handles all of your payroll, benefits, client questions, and back office responsibilities. What happens when this employee leaves?
• More importantly, what happens if this employee leaves and goes to work for your competitor! All of his/her knowledge and expertise learned from you is now working against you.
• How are you going to handle all of the administrative duties like the payroll and taxes? This is a pretty scary and realistic situation. Having one employee handle all of your business leaves you very vulnerable and with out control. There is no doubt that there should be a level of employer/employee trust but those “what ifs” are real and you should think big when protecting your small business.
• Back office responsibilities for small businesses are a money burner. The more time you spend on payroll and HR related tasks, or on hiring and training a bookkeeper, the less time you’re spending managing your business.
• Most small business owners didn’t go into business because they were passionate about performing the administrative tasks that go along with running a business.

EmployShare’s number one priority is protecting what you have built so hard for. We understand how important every employee is to the success of your business and we want to eliminate the work that is non-revenue producing. Let us be your one point of contact for all administrative operations.

How much time do you spend on payroll and administrative duties? How do you handle employee complaints? How do you keep up with changing regulations, withholding rate and government forms? Or more importantly, would you pass an audit if the IRS or Department of Labor walked through your doors?

• Back office responsibilities for small businesses are a real money burner. The more time you spend on payroll and HR related tasks, or on hiring and training a bookkeeper, the less time you’re spending managing your business. Most small business owners didn’t go into business because they were passionate about performing the administrative tasks that go along with running a business.
• According to the Small Business Administration: small business owners spend between 7% and 25% of their time handling employee-related paperwork and issues. Not the most productive use of time is it?
• One government intervention or employee complaint can tear down a business.
• Now is the time to re-strategize your focus and give your company a competitive edge. Keeping up with the ever changing tax laws and HR regulations at times can be cumbersome but is crucial in reducing your business risk and liability.

With EmployShare as your HR department, you can grow your business while we fortify your compliance requirements with our expertise and fast action.

WHY EMPLOYSHARE?            Accountability.  Proactivity.  Liability.  Compliance.  Turnkey Solutions.