Q&A with Execupay CEO, Gerald Stowers

Regarding the upcoming Payroll Tax Holiday

 

The Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010, provides a two percent payroll tax cut for employees, leaving employers scrambling. Gerald Stowers, CEO of Execupay, expected those changes and answers pertinent questions.

 

Q:  With the new tax holiday legislation being passed at just a minute before midnight, what can you tell us about how this will affect your clients?

GS: Our clients, as the new rates are put in place, will see their employees’ social security taxes reduced by 2%.  This is a great New Years treat for the employees’ wallets, but can present a very difficult process change for an employer who is handling payroll in-house.  As an employer who has entrusted their payroll to Execupay, we are responsible for ensuring that this tax changes has been implemented on their behalf.

 

Q:  As both the developer of payroll software, and the payroll service provider, how did this affect your decision making process and workflow?

GS: In the fall, we heard the early buzz coming from Washington regarding potential legislation that would change the rate, and made a strategic decision to make an educated guess as to the direction Congress would go – we chose correctly.  This has put us ahead of the game.  As recently as this morning, we heard news that one of the top two payroll service providers in the U.S. has to manually process this change because they did not get their systems updated in a timely manner.  Here in lies the advantage of working with Execupay.  We are able to react quickly to an ever-changing environment, and provide an immediate response.