GTM Payroll Services recently surveyed nanny agencies from across the country to get their feedback on a number of topics. Ninety-three percent of agencies responded that they provide information about payroll and tax services to their families, whether it’s recommending a payroll service or just informing their families about paying their employee legally.
There are a number of benefits for your agency in referring a payroll service as well as key advantages your families will enjoy.
For you:
Competitive differentiator
Referring families to a trusted payroll service partner provides even more value to your offerings. As a full-service agency with a focus on educating families through consultative placements, you’ll differentiate your agency from online placement services. You don’t need to get bogged down in the details of payroll and tax. Provide as much information as you like. Your partner will handle the rest. And with a household payroll and tax partner, your families will have access to ongoing expertise to assist with questions that arise regarding various employment situations such as overtime.
More client referrals
Addressing payroll and tax can help increase your placements. You’ll gain the trust of your families that you have their best interests in mind. This increases positive word of mouth (think mom and parenting blogs too!) about your agency and leads to more client referrals.
Referral bonus
Your payroll service partner may offer a referral bonus for your families that sign up for their services. Over the course of a year, this can add thousands of dollars to your bottom line.
Families may want to “do it themselves” or go with cheap software or online service to manage their household payroll. However, there are many risks involved in these choices that could lead to fines and penalties not to mention the hassles of trying to get it right.
For your families, a full-service payroll provider will:
Give them peace of mind
A full-service payroll provider will accurately prepare, submit and pay all quarterly and annual federal, state and local taxes on time, every time. There are no worries about missing tax deadlines. End-of-year services are available to prepare tax forms such as Schedule H for families to submit with their personal returns.
Save them hours of their time
The IRS estimates that it will take a household employer 60 hours every year to comply with all federal and state payroll, tax and insurance laws. That’s time better spent doing the things in life you enjoy rather than wasting it on processing payroll and filing tax forms.
Ensure compliance with the law
It’s very easy to fall out of compliance with shifting payroll, tax and insurance laws. A payroll service provider stays on top of all changes to federal, state and even local regulations to keep your families in the good graces of the IRS and other agencies.
Help them attract and retain high-quality employees
Full-service payroll providers go beyond just cutting a check for a nanny. They can help provide health insurance or a retirement plan for household employees. This can give families a competitive advantage when seeking to attract a top candidate for a position or keeping an employee they love.
Families may turn to their accountants to handle their payroll and tax responsibilities. However, many accountants can be more costly to perform these services than a payroll provider. Some accountants may be unfamiliar with the nuances surrounding household employment such as workers’ compensation, overtime regulations and domestic workers’ bill of rights. In fact, many accounting firms refer their clients to household payroll service providers. This way they know their clients are getting the support they need from experts in the field.
To learn more about how GTM Payroll Service helps families and placement agencies, visit GTM.com or call Robert Lee, partner manager, at (800) 929-9213 ext. 7248.