While individual states have differing rules for how SUTA practices are handled when a company joins a PEO, there are many states (including Tennessee) where the PEO client’s wages are reported under the Federal Employer Identification Number (FEIN) of the PEO, using the PEO’s combined experience rating and corresponding SUTA rate.
The PEO handles the administrative burden of the filing of tax returns, tracking rates, filing returns, maintaining data, and providing claims information to states in the event of a dispute. In addition, a good PEO will offer professional expertise to assist their clients with implementing sound HR processes such as employee performance reviews and proper documentation of termination. All these procedures can result in less paperwork for the PEO’s clients and a favorable combined SUTA rate for the PEO. When selecting a PEO, please be sure to inquire about any combined rates which will now apply to your company.
Interested in learning more about how LBMC Employment Partners can help your business with SUTA taxes through our PEO services? Contact us today.
All content and services on this page are offered by LBMC Employment Partners, LLC. LBMC Employment Partners, LLC, is part of the LBMC Family of Companies and is an independent entity with services and products being provided exclusively by LBMC Employment Partners, LLC.
LBMC Employment Partners, LLC, a member of the LBMC Family of Companies, is a world-class professional services firm. LBMC Employment Partners provides a comprehensive suite of human resource-related services to businesses including Professional Employer Organization (PEO) services, HR Outsourcing (HRO), Payroll, Payroll Tax Outsourcing, Human Resource Consulting, Employee Benefits, and ACA Compliance Consulting. For more information visit www.lbmcep.com.