Simco Blog

It’s April 15—Tax Day in the U.S.—and if you’re a business owner or HR professional, chances are W-2s, filings, and compliance have been front and center for weeks (if not months). But here’s the thing: tax season doesn’t have to be stressful. The right payroll and HCM technology can turn what’s traditionally a time-consuming, error-prone scramble into a streamlined, accurate, and surprisingly painless process. From automatically balancing year-to-date totals to generating and distributing W-2s on time, a robust payroll system ensures nothing slips through the cracks. No more cross-checking data across platforms, no more last-minute tax filings, and no more anxiety about penalties or missed deadlines. At Simco, we get it—because we help businesses simplify this process every single day. The Challenges of Traditional Payroll Tax Management If you're still managing payroll taxes manually—or using disconnected software systems—it’s all too easy to fall behind. Some common issues employers face include: Human error : Tax calculations, forms, and deadlines are complex. A small mistake can lead to penalties or costly overpayments. Time-consuming manual work : Without automation, payroll processing can involve endless imports, exports, and reconciling data across multiple platforms. Compliance risk : With ever-changing tax laws at the federal, state, and local levels, staying compliant can become overwhelming without the right tools. How the Right Technology Can Make Tax Season a Breeze Today’s modern payroll and HCM systems are designed to simplify these challenges. Here’s how the right technology can help: 1. Automated Tax Filing and Payments: An integrated payroll system automates tax calculations, deductions, and filings. Forms like W-2s and W-3s are automatically generated, filed, and paid—without manual input. This reduces the risk of late filings, penalties, and missed deadlines, ensuring compliance with the IRS and state tax agencies. 2. Streamlined W-2 Management: W-2s can be a headache to manage—especially if you have complex tax scenarios like multi-state employment. With an automated system, W-2s are generated and distributed electronically, ensuring accuracy even in complex situations. Employees receive the correct form without you having to spend valuable time cross-checking or manually making corrections. 3. Self-Balancing Capabilities: A self-balancing payroll system ensures that your year-to-date totals and tax filings are accurate, eliminating the need for extensive manual reconciliation. By automatically matching figures in real-time, it streamlines year-end reporting, providing peace of mind when the filing deadline approaches. 4. Fewer Third-Party Imports and Exports: With everything integrated into a single platform, you won’t need to rely on third-party software or services for tax filing and reporting. This means fewer opportunities for errors, fewer manual imports and exports, and significant time saved during payroll processing. 5. Automated Adjustments and Updates: Tax laws and rates change frequently. With the right payroll system, you won’t have to worry about manually updating deductions or tax rates. The system automatically applies changes—whether it’s an update to federal tax rates or state-specific deductions—so your payroll is always up to date. 6. Expert Support When You Need It: Even with the best technology, tax season can present complex challenges. That’s why it’s important to have access to expert support. Whether you need help with multi-jurisdiction filings, audit preparation, or just have questions about tax return procedures, our team of HCM Specialists at Simco is here to provide guidance and ensure that you’re compliant every step of the way. Why Choose Simco for Smarter Payroll and Tax Management? As an isolved Network Partner, we offer a fully integrated payroll and tax management system that is built to handle the complexities of tax season—and beyond. We provide businesses with the tools they need to automate tax filings, ensure compliance, and streamline payroll processing. Here's how we do it: All-in-One Payroll & Tax Platform : From payroll processing to tax deposits and W-2 filings, everything happens within one system, reducing manual work and the risk of errors. Automatic Filing & Timely Accuracy : Federal, state, and local tax filings are completed automatically and on time, ensuring your employees receive only one accurate W-2 form—even in multi-state tax scenarios. Error-Free Tax Reporting : Our self-balancing ledger helps reduce errors and simplifies reconciliation, making tax reporting easier and faster. Expert Support : Whether it’s navigating multi-jurisdictional filings, preparing for an audit, or handling amendments, our team is always available to offer expert advice and assistance. Cost-Effective Solutions : We offer top-tier tech at competitive pricing, often matching or beating our competitors (learn about the Simco Price Match Commitment here !), while providing the personalized service that large providers can’t. Let’s Make Next Tax Season Easier, Starting Today It’s never too early to think about next year. With our unified payroll/HCM solution at Simco, you can save time, reduce stress, and ensure compliance all year long. It’s time to upgrade your payroll system to one that works smarter, not harder. Let’s chat and explore how we can help streamline your payroll and tax processes, so you can focus on growing your business with confidence.

The future of work is changing fast, and HR leaders are taking notice. More than half of companies are planning to switch their HCM platform this year—but not just for any solution. They’re looking for intelligent, scalable, and AI-driven technology that doesn’t just process payroll but actively enhances business operations. The days of rigid, outdated systems are over. Now, businesses need platforms that adapt, automate, and evolve alongside them. At Simco, we’re passionate about delivering the most advanced, transformative solutions to our clients. That’s why we’ve partnered with isolved, a recognized leader in the HCM space, to provide our clients with a powerful, AI-enabled platform that makes workforce management effortless. With a focus on automation, predictive analytics, and employee experience, isolved is changing the game for small and mid-sized businesses—and we’re here to help you make the most of it. Why isolved Stands Out in the HCM Market For the second consecutive year, Nucleus Research has named isolved a leader in its HCM Value Matrix for Small and Medium-Sized Businesses (SMBs). The firm’s analysis highlights isolved’s enterprise-grade functionality, designed specifically for SMBs looking to streamline operations, enhance compliance, and leverage AI to drive efficiency. isolved’s adaptability ensures it evolves alongside customer needs. Whether an organization’s HR function matures or its priorities shift, isolved is uniquely positioned to support its success through continuous innovation. In 2024, the company launched 480+ product enhancements directly driven by direct customer feedback. Nucleus Research’s report also highlights several key updates, including: isolved's Candidate Match Tool , an AI-powered feature that evaluates and ranks candidates, streamlining the hiring process. Enhanced Talent Acquisition Services , including recruitment process outsourcing (RPO), job placement assistance, and comprehensive hiring solutions for quick-service restaurants (QSRs). A Broadened Content Library, now with over 95,000 courses designed for employee training, compliance, and professional development. A Next-Gen Time Clock , featuring advanced facial recognition and remote access for secure and accurate time tracking. The Power of Partnership: Simco + isolved While technology is the foundation, the real value comes from how it’s applied. At Simco, we don’t just provide software—we offer a full-service HCM and advisory solution, ensuring that all aspects of workforce management integrate seamlessly. Our clients benefit from: A Dedicated Client Success Manager – Your go-to resource who oversees your relationship with Simco, ensuring that every service—HCM, HR advisory, benefits, insurance, and retirement—works together without gaps. A Fully Integrated HCM & Advisory Solution – No need to juggle multiple vendors for payroll, HR advisory, employee benefits, commercial insurance, and 401(k)/retirement plans. Simco is your one-stop shop for all workforce solutions. Strategic Guidance & Ongoing Optimization – We help businesses maximize their investment in HCM technology while aligning it with compliance, employee engagement, and long-term growth goals. As businesses evolve, so do their workforce management needs. By combining isolved’s leading-edge technology with Simco’s hands-on service and industry expertise, we help businesses stay ahead of change, improve efficiency, and create better employee experiences. Ready to explore the future of HCM? Contact us today to learn more about how we can transform your workforce operations!

In today's rapidly evolving business landscape, an organization's most valuable asset isn't necessarily its cutting-edge technology or its impressive list of clients. Instead, it's the people who make up the workforce. Human Capital Management (HCM) is the strategic approach that recognizes and harnesses this vital resource, ensuring that businesses can thrive in a competitive world. What is Human Capital Management (HCM)? Human Capital Management (HCM) is a holistic and strategic approach to managing an organization's workforce. It encompasses a wide range of practices and processes designed to attract, develop, motivate, and retain employees, ultimately driving business success. HCM is not just about the administrative aspects of personnel management, like payroll and benefits administration. It focuses on optimizing the value that employees bring to the organization through their skills, knowledge, and abilities, with technology acting as a crucial enabler. Key Components of HCM Talent Acquisition: HCM begins with attracting and hiring the right talent for the organization. This involves creating effective recruitment strategies, conducting thorough interviews, and evaluating candidates' fit within the company culture. Onboarding and Training: Once hired, employees need proper onboarding and training to be productive. HCM includes developing comprehensive training programs that align with the organization's goals and help employees reach their potential. Performance Management: Effective performance management involves setting clear expectations, providing regular feedback, and conducting performance evaluations. HCM systems often include tools for tracking employee performance and setting goals. Career Development: Organizations that invest in their employees' career growth tend to have more engaged and motivated teams. HCM includes creating pathways for employees to develop new skills and advance within the company. Compensation and Benefits: Fair and competitive compensation packages are essential for attracting and retaining top talent. HCM involves designing compensation and benefits packages that reflect market trends and employee contributions. Workforce Analytics: Data-driven decision-making is a fundamental aspect of HCM. Analyzing workforce data helps organizations identify trends, predict future needs, and make informed decisions about resource allocation. The Benefits of HCM Implementing effective Human Capital Management can bring numerous advantages to organizations, including: Improved Productivity: When employees are well-trained, motivated, and equipped with the right tools, productivity increases. Enhanced Employee Satisfaction: HCM practices that focus on employee development and well-being contribute to higher job satisfaction and lower turnover rates. Cost Reduction: Efficient HCM can reduce recruitment costs by retaining top talent and avoiding frequent turnover. Strategic Alignment: HCM helps align workforce strategies with overall business goals, ensuring that human resources are used strategically. Compliance: HCM systems often incorporate tools for tracking and complying with labor laws and regulations. Advantages of HCM Enhanced by Technology Adopting technology-driven Human Capital Management can offer numerous benefits to organizations, which include: Enhanced Efficiency: Technology streamlines various administrative tasks, reducing the need for manual work and mitigating the risk of errors. Informed Decision-Making: Workforce data analytics provides valuable insights, empowering organizations to make informed decisions and align their HR strategies with their business objectives. Increased Employee Engagement: Technology facilitates continuous feedback, personalization, and supports career development, leading to higher levels of employee satisfaction and improved retention rates. Ensured Compliance: HCM software automates compliance-related tasks, helping organizations adhere to labor laws and regulations effectively. Human Capital Management (HCM) represents a fundamental shift in how organizations view and manage their employees. It recognizes that people are the most critical asset in achieving business success. By investing in talent acquisition, development, and retention, organizations can optimize their workforce's potential, improve productivity, and gain a competitive edge in today's fast-paced business environment. As technology continues to evolve, HCM will play an increasingly vital role in shaping the future of work.

As the new year soon approaches, now is a good time to start preparing for your payroll year-end. Below is a list of things you can do to help prepare yourself but is by no means a comprehensive list of all steps that should be taken.

The current federal minimum wage rate is $7.25 per hour. However, several states have adopted minimum wage rates higher than the federal rate. When both the state rate and the federal rate apply, employers must pay their employees the higher rate. The following states have announced new minimum wage rates for 2023:

According to HR services provider ADP, salaries have been rising rapidly, nearly on par with inflation. Year-over-year pay raises increased by 7.6% leading up to August 2022, compared to an average of around 2% in early 2021. While pay has increased overall, its growth has flattened since April.

At the start of 2022, the DOL announced an initiative to hire 100 additional WHD investigators, signaling a potential increase in enforcement in 2022 and beyond. This initiative means now is the time for employers to review their wage and hour practices to ensure compliance with all relevant laws. This article contains case studies that explore the most recent, real-world examples of employers found to be in violation of wage and hour laws. The case studies include snapshots of violations and general guidance on how employers can prevent similar issues. Employers can examine these case studies to learn from the mistakes of others in comparable industries and avoid costly consequences.

Federal laws, such as the Federal Insurance Contribution Act, the Fair Labor Standards Act (FLSA), the Equal Pay Act and the Civil Rights Act, impose recordkeeping duties on employers. Recordkeeping duties include creating, updating and preserving information. State law also imposes several recordkeeping requirements on employers. These laws operate in addition to, or in conjunction with, federal requirements. This Employment Law Summary provides an overview of various New York recordkeeping requirements that generally apply to all employers in the state. Additional requirements may apply for employers in certain industries.

A critical function of your payroll is the security of your employees personal and sensitive information. How you store this information is vital to protecting your employees and avoid legal issues. Let us provide a few useful tips for preserving payroll confidentiality.

When determining whether someone should be considered an employee or an independent contractor (W-2 versus 1099), it is very important to make sure they are classified properly, which may require you to consult your CPA or tax consultant. There are fines and penalties associated with having a person mis-classified. The IRS can assess a fine up to $280.00 dollars per misclassification or $3.3 million dollars for an annual cap if there are several employees misclassified. That does not include any additional employment taxes the employer may owe for mis-classified wages, plus penalty and interest that is due on those taxes. Therefore, it is very important to have the employees classified correctly. There are several sets of criteria used in general; and the criteria is somewhat vague in determining if someone should be considered a 1099 or a W-2 employee. Here’s some general criteria that can help in determining how a person is classified and how they are paid.

As we approach year end, it is time to make sure you are prepared to report any short-term disability (also known as Third Party Sick Pay or 3PSP) and paid family leave benefits received by employees during the year. To be able to do this properly, there are many aspects that need to be understood, which will be covered in this article.

As we enter the fourth quarter, now is a good time to start preparing for your payroll year-end. Here is a list of many things you can do to help prepare yourself but is by no means a comprehensive list of all steps that should be taken. Get the Payroll Year-End Checklist here.

Are you tired of passing out paystubs? You are not alone. More and more businesses are switching over to paperless payroll, and for good reasons! Paperless payroll solutions are being sought after by management. “Too many times, I have received notification that a delivery company is not going to be able to deliver a payroll package as scheduled due to a storm that has impacted a flight or mechanical issues. This creates a huge hassle for the employer and employee. Either the employee has to wait until the check arrives, or the employer has to write a replacement check (including issuing a stop payment on the original check) which is just added cost and time,” says Greg Stabley, Senior Payroll Specialist for SimcoHR. But before you make the switch, here are some things that employers should know.

Each time your employee receives their paycheck, they see a whole lot of money deducted from their gross pay. Their pay stubs show the deductions from things like taxes, health insurance and perhaps more. Group term life insurance (GTL) is one of those items they may discover on their paystub if it is part of your employee benefits package. This employee benefit may be extended to employees’ spouse and dependents. Even though you, as the employer, may pay the insurance premiums on GTL or pass it along to the employee, the employee may owe the taxes on it depending on the amount of coverage that is given. GTL may be taxable or tax-free, but either way is an inexpensive way for your employee to be offered coverage they need.

Can An Employer Require an Employee to Show Their Social Security Card? Did you know that you cannot ask your employees to use their Social Security Card for I-9 purposes? However, you can ask them to present their Social Security Card for payroll reasons. According to the IRS, “You are required to get each employee's name and Social Security number (SSN) and to enter them on Form W-2. (This requirement also applies to resident and nonresident alien employees.)”

If your job is to run the payroll, it important to stay well-informed of the employment tax duties. You need to contribute employer taxes, on top of withholding from your employee’s income and payroll taxes.

Many businesses have said that their employees are coming to them saying that their Federal Tax Withholdings have seemed to change drastically. So, what is causing this? We'll talk about it here.

Payroll Update: Possible adjustments you might want to consider since voluntary deduction amounts were calculated on 52 weeks.