Cash Flow Improvement
Many companies experience a serious cash flow squeeze at the end of April, when the first quarter state and federal unemployment taxes are due, and when their workers' compensation insurance renews and a large deposit must be paid. Further complicating this problem is the fact that these items must often be paid at about the same time tags and permits are being renewed.
With PeopLease's single rate factor throughout the year, your cash flow for employment related items is even and predictable. Unemployment taxes are spread out evenly throughout the year instead of coming due primarily at the end of the first quarter, and workers' compensation premiums are paid as the wages are paid instead of being heavily front loaded at policy renewal time. There are also no surprises at the end of the policy year, when an audit of your workers' compensation policy may reveal further liability of thousands of dollars. With the PeopLease system, you pay as you go, pay evenly throughout the year, and you are never charged for anything other than amounts due, based on the rate factor, with your payroll invoice. Cash flow worries related to payroll and employment items are a thing of the past.