All of my employees are remote W2 employees with health benefits, etc. Over time, employees have moved to different states and now I am paying having to pay unemployment and payroll taxes in multiple states. I use Quickbooks for payroll which automatically calculates and pays the taxes so that part is not difficult but it increases our accounting expenses having to deal with multiple states and I am wondering if there is a better way to pay people?
I do not want to pay them as contractors so that is not an option. I’ve looked at PEO’s in the past but they seem to be more expensive than just doing it the way we are already doing it.
Is there anything else out there I should be looking at to make payroll and taxes more efficient?
Is there a reason to not do a 1090?
You cannot pay employees as contractors as that is against the law. If they are truly contractors that work on specific projects on their own schedule then yes you could. If they have to show up at a specific time and fill a specific role then you cannot pay them them as 1099.