Payroll Tax Compliance Costs Hurt SMB IT FirmsTuesday, May 22, 2012
Posted by Brawlin Melgar
CompTIA Small Business Spotlight: Payroll Tax Compliance Costs Hurt Small IT Firms
Washington, D.C., May 22, 2012 – In conjunction with National Small Business Week, CompTIA, the non-profit association for the information technology (IT) industry, is spotlighting its small business members and some of the issues affecting their ability grow their businesses. Today’s featured member is Jenaly Technology Group of Portsmouth, N.H.
Small IT Entrepreneur Spotlight: MJ Shoer “My vision and desire to start a new company came from my experiences hiring IT companies in my last job and my deep belief that IT services could be delivered in a better way that would also be a win-win for both provider and client,” explained MJ Shoer, founder, president and virtual chief technology officer of Jenaly Technology Group.
Today, the company employs eight people and provides technology service, support and counsel to small business customers across many different industries. Jenaly offers a range of IT services all focused on being a complete outsourced technology solution provider for their clients.
“This year, we’re working to rebrand our service delivery in the image of the concierge, giving our clients a single place to turn for any and all IT-related issues,” Shoer said. “Our customers know that they can hand their IT needs over to us with the confidence and assurance that we will see them through with their best interest at heart.”
But Shoer also said that his business operations are complicated by the complex myriad of payroll tax regulations and requirements that his company – and other small IT firms – must deal with.
“It’s become both a cost center and a continually evolving burden for our business,” he said.
Shoer enlisted the support of CompTIA Public Advocacy to look for ways to cut costs associated with payroll tax filings. Right now, most small businesses are required to file quarterly federal payroll tax returns. Shoer believes that collapsing these four filings into a single annual payroll tax filing is a simple change that would help small businesses decrease annual compliance costs and limit their exposure to time-consuming tax return follow-up.
“The cost of tax compliance is a huge issue that impacts our ability to focus on our core businesses and, as a result, new business opportunities,” Shoer said. “It just makes sense to allow small businesses to move to an annual payroll tax return filing. This will free up time and money for us to spend on growing our business and contributing to job creation and economic growth.”
A longtime member and current board member of CompTIA, Shoer is active in working with the association’s Public Advocacy group on opportunities to simplify the life of the small business owner.
“It seems like there is a disproportionate economic burden on small businesses as it relates to tax compliance issues,” he said. “The better we can make our businesses, the more we can help our clients improve their own businesses and the economy and nation will benefit. I would hope to see CompTIA have an impact on simplifying these issues and driving down our tax compliance costs and complexities to help us accomplish our goals.”
CompTIA is the voice of the world’s information technology (IT) industry. Its members are the companies at the forefront of innovation; and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. For more information, visit www.comptia.org or follow CompTIA at www.facebook.com/CompTIA and twitter.com/comptia.
CompTIA’s Public Advocacy group focuses on a broad array of issues affecting the IT industry, with particular emphasis on representing the interests of small and mid-sized IT companies and entrepreneurs. Areas of focus include workforce education and training, tax matters, access to capital, health IT, procurement, cybersecurity and smart technologies