Back-office operations might not be the most glamorous aspect of your staffing business, but they ARE essential. No one gives out medals for flawless payroll execution or tax compliance, but when things go wrong, the consequences can be devastating. Missteps in payroll and benefits can lead to compliance issues, costly fines, and damaged relationships with both clients and talent. And for staffing agencies managing employees across multiple jurisdictions with varying tax implications, these risks are even greater.
Managing payroll and benefits manually for a large workforce is time-consuming, error-prone, and typically requires a large staff. Now is the time to plant the seeds for more efficient back-office operations. If you start making changes today, you can hit the ground running on January 1st with systems in place that will allow your business to thrive in the coming year.
In our upcoming series, we will spotlight four critical back-office priorities every agency should focus on to maximize efficiency: payroll management and taxes, payroll funding, health benefits, and retirement.
So, what can you be doing better? Let’s start with the first topic on our list—efficient payroll and tax management—and explore how Avionté offers three service levels to help clients streamline all aspects, from calculating and withholding to remitting payroll taxes and ensuring compliance with tax regulations.
Many staffing agencies struggle because their front-office and back-office software systems are not connected and don’t communicate effectively. When your assignment data isn’t flowing smoothly into payroll software, you risk inaccuracies, delays, and even lost revenue. By using an integrated staffing platform like Avionté’s, which connects front-office assignment data directly to payroll, you can ensure that your talent is paid accurately and on time.
But automation isn’t just about making things easier—it’s about ensuring information integrity. With one system handling assignments and payroll, you eliminate discrepancies between what clients are billed and what your talent is paid. This not only streamlines operations but also helps maintain trust with both clients and talent, which is crucial for long-term success.
Avionté’s front- and back-office integrated software makes payroll smoother by providing seamless pay and tax management. A single, integrated system for front- and back-office data means more accurate payroll and a seamless flow of information from customer, order, and employee records. From payroll filings and integrated reporting to generating W-2s, 1095-C, and 1099s, our robust, user-friendly interface streamlines year-end close and keeps your operations running smoothly.
But what about tax filings and deposits? Payroll taxes are complex and vary by jurisdiction, making local, state, and federal filings a challenge to manage manually. Each jurisdiction has its own deposit schedule, website, and login details, forcing your team to navigate multiple systems across different regions to ensure timely and accurate payments. And even small mistakes can result in costly penalties!
Avionté offers multiple solutions to help you manage this process:
At the most basic level, for agencies that prefer to manage their own payroll tax funds, Avionté simplifies the process through built-in partnerships that make filing easier. Whether you’re handling e-filing or working with jurisdictions that require manual submissions, our system streamlines tax submissions, eliminating the need for third-party providers, accountants, or tax professionals.
For those seeking a deeper level of support and automation, we also partner with providers to streamline both tax filing and deposits. With the ADP integration, federal and state employment taxes are automatically calculated, withheld, and remitted to the proper agencies based on your deposit schedule each time payroll runs. This automates the entire process, freeing your team from managing multiple portals, reducing errors, and speeding up payroll processing. ADP also offers the option to take over liability for deposits and filings. If interested, you can speak with an ADP representative to learn more.
Thanks to our deeply integrated partnership with ADP, we’ve reduced the payroll tax process from over 50 steps to under 10. Imagine – with just a simple click within the Avionté payroll platform, your data flows directly to ADP, which automates the entire deposit process and prepares the data for filing, leading to faster processing, fewer penalties, and a more efficient team. With Avionté+, you can seamlessly integrate with ADP to automate tax filings, ensure compliance, and significantly reduce administrative burden—all while maintaining your data within a unified system.
What if you need more than just automation? Payroll taxes are complex and demand expert oversight, which is why Avionté offers more than just software. Our Payroll Tax Assistance (PTA) Team ensures that your payroll tax deposits and filings are managed accurately and efficiently. By working directly within your instance of the software, we have seamless access to your account to handle electronic returns and tax deposits on your behalf.
By partnering with Avionté’s PTA team, you can easily augment your internal payroll capabilities. Our team essentially becomes an extension of your workforce, providing expert guidance and support. And whenever you need assistance, our PTA experts are just a phone call away. This allows you to focus on other critical aspects of your business, knowing that your back-office operations are running smoothly.
Beyond payroll taxes, staffing agencies have other financial responsibilities, such as administering WOTC (Work Opportunity Tax Credit) providers and responding to unemployment claims. If these processes aren’t seamless, you’re likely missing out on potential savings! Simply put—without a third-party service to automate these tasks, you could be leaving money on the table. Avionté automates and integrates these tasks, saving your agency time and reducing the risk of errors.
Our partnerships with companies like ADP and Experian enable us to automate WOTC filings, helping you maximize your tax credits. Agencies using these automated solutions have experienced a 15-20% increase in credits by ensuring timely submissions.
Unemployment claims are a constant challenge for staffing agencies, and many agencies lack a robust system for contesting or confirming eligibility. This often leads to overpayment of unemployment taxes by up to 20%. Our partnership with HRlogics addresses this issue by automating the unemployment claims process. With HRlogics’ Unemployment Tracker, you can streamline this process and achieve a win rate of up to 90% for contested claims.
As 2024 comes to a close, now is the time to set yourself up for success in the new year. Payroll and tax management are crucial elements of your back-office operations. Getting them right can mean the difference between success and failure. With Avionté, not only do you have a fully integrated ATS and payroll software system, but you can also stand up outside services that help you maximize tax credits and reduce tax management costs.
When looking at your strategy for next year, think about how you can manage your company with greater efficiency and scale without constantly adding additional staff. There are many strategies to drive your business forward; but remember: if your back-office software doesn’t enhance efficiency, compliance, and ROI, your business won’t have the solid foundation needed for growth.
With Avionté, you can optimize your business in three key ways by streamlining your back-office payroll and tax operations:
As you plan your 2025 strategy and set the stage for a successful year ahead, consider how optimizing your tax and payroll processes can drive your business forward. Inefficient back-office operations can hinder your agency, lead to lost revenue, and weaken the foundation needed for expansion. With Avionté, you gain the backbone for a more robust and scalable business, ready to thrive in the coming year and beyond.
Want to see how a modern staffing platform can help your staffing business be more efficient? Schedule a free consultation call today.
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