Healthcare companies are faced with some of the most complex and most difficult to optimize payroll and tax-related processes of all companies. The diversity of the workforce, the industry-specific overtime needs of these companies and many other difficulties, all call for special payroll management practices.
The basic principles of payment calculation are the same in any industry: payment calculations based on work hours, calculating and withholding employee taxes correctly and managing compliance with federal, state and local laws. But healthcare companies are faced with specific challenges.
One of the payroll challenges most difficult to deal with in the healthcare industry is the extremely high personnel turnover paired with multiple pay rates. The obvious need to address these challenges means complex payroll systems that are able to handle these differentials and ensure that payments are calculated and delivered to the employees correctly.
Healthcare companies and healthcare organizations face challenges in terms of taxation as well. Even tax-exempt organizations are required to pay unrelated income taxes, excise taxes and employment taxes, and the situation is getting more complex and infinitely more complicated in the case of large-size organizations.
Given this complexity, there are many healthcare companies, both for-profit and non-profit organizations, which choose to outsource their payroll as well as their tax-related tasks to third-party companies – a decision that simplifies the way the company’s core business is handled and in most cases reduces the overall corporate costs.
Payroll service providers possess the knowledge to ensure perfect compliance with the existent laws and regulations, so the healthcare companies that manage to find the right partner will benefit from the highest level of accuracy, efficiency and timeliness in payroll and in tax filings as well.