Jurisdiction audit
At onboarding
Every state and locality where you have a worker, mapped against the registrations you actually hold. Gaps are usually found here.
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Multi-state registration, filings, worker classification and year-end forms, the part of payroll that a payroll platform does not actually handle for you.
State and local payroll tax registration, filing oversight, worker classification analysis, fringe benefit and owner compensation treatment, and year-end W-2 and 1099 processing.
The platform will calculate withholding for any state you tell it about. It will not tell you that hiring one person in Rhode Island created a registration requirement, an unemployment insurance account and, in some municipalities, a local filing. That determination is yours, which in practice means it is nobody’s.
We handle the layer around the platform: which jurisdictions you must register in, keeping those registrations current, reviewing the filings that go out, and reconciling the quarterly returns to the general ledger before year-end rather than during it.
Worker classification is the exposure that gets expensive fastest. Massachusetts applies a strict three-prong test, and a reclassification reaches back through unpaid employment taxes, benefits, penalties and interest. We review the contractor population annually and document the position for the ones we are comfortable with.
Owner compensation sits at the intersection of payroll and tax. S corporation salary has to be defensible, fringe benefits to two-percent shareholders have specific treatment, and accountable plans have to be written down to work. All of it is easier to do once, properly, than to explain later.
We work alongside Gusto, ADP, Paychex, Rippling and the rest. This is oversight, not a second bill for the same processing.
Withholding and unemployment insurance accounts opened in every state you employ in, and closed properly in the ones you leave.
Quarterly and annual returns reviewed before submission and reconciled to the general ledger, so year-end holds no variance to chase.
Annual review of the contractor population against federal and Massachusetts tests, with the position documented for each engagement.
Health insurance for two-percent shareholders, vehicle use, group term life and accountable plan design, treated correctly and consistently.
Reasonable salary support for S corporation owners, coordinated with the tax planning model rather than set by habit.
W-2 and 1099 preparation, filing and correction, including the 1099-NEC population that most companies assemble in a hurry.
Payroll problems are cheap to prevent and expensive to unwind. The whole service is built around that asymmetry.
At onboarding
Every state and locality where you have a worker, mapped against the registrations you actually hold. Gaps are usually found here.
Four to eight weeks
Missing accounts opened, dormant ones closed, and back filings resolved before a notice arrives asking about them.
Every quarter
Filings checked against the ledger, classification changes flagged, and new states caught in the quarter they appear rather than at year end.
December and January
Fringe benefits recorded on the final payroll, forms issued on time, and the reconciliation completed before the tax return needs it.
These sit next to each other for a reason: most engagements draw on two or three of them at once.
Accounting overviewIf you have hired outside Massachusetts in the last two years, a jurisdiction audit is worth doing before a state asks first.