Complying with the Employment Tax Implies Positively on Companies

Tuesday, February 11, 2014 Print Email

According to the latest survey, there was greater employee satisfaction and profitability for those Business organizations with a strong employment-related tax and payment compliance program. The survey carried out by the CFO Research and ADP deduced that giving compliance priority may assist in leading to a workforce that is more engaged, a corporate culture that is much improved with a competitive edge that is sharper.

The survey respondents reported that the requirement to conforming with about 70 % of various jurisdictions and ensuring 49% data security and privacy raises the difficulty in the management of employee related tax issues and payment compliance issues. Some of the managers do not observe priority in compliance management because of the challenges entailed. Out of the senior HR executives and senior finance officers surveyed, greater than 33 % of them viewed compliance to be low in priority and 33 % of these respondents said that their companies would be graded on level C as per the compliance handling in an organization.

The data gathered deduced that compliance is growing in significance for all sized companies considered to be successful; this was said by Mark Benjamin who is also the ADP global enterprise president. Regrettably, the complexity entailed with the management of employment related tax and payment compliance overwhelmed some of the companies so much that they are not aware of where to start from. The good news is that most organizations who invest in this compliance program and offer it priority are experiencing the importance and at times unanticipated payoffs for their business organizations.

The survey showed that those organizations which have invested in full bodied compliance management recognize that business results can be delivered. About 60 % of these survey respondents stated that the employment related tax with the payment compliance impacted positively on the productivity of employees and the operational efficiency. On the other hand, 50 % said that it impacted positively on the overall profitability of the company. The respondents also observed how employment related tax and payment compliance may assist in surprising payoffs they least expected like boosting employee satisfaction and engagement employee.

Source: ReadyRatios

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