Is LTC Payroll Your Biggest Compliance Headache?
In healthcare, one payroll mistake can lead to staff frustration, union grievances, and costly government penalties.
Long-Term Care payroll is notoriously complex. You’re not just cutting checks; you’re managing 24/7 shift differentials, overtime calculations, PRN staff, multi-state taxes, and complex labor law compliance. A single data entry error can result in an underpaid (and unhappy) nurse or a five-figure fine for non-compliance.
Non-Compliance Penalties
The IRS penalizes 1 in 3 businesses for payroll errors, with average penalties in the thousands.
Manual Process
Manual payroll processing can take up to 10 hours per pay period for a mid-sized facility, time that could be spent on staff development.
What Is Healthcare Payroll Outsourcing?
Healthcare payroll outsourcing is the practice of handing off wage calculation, tax filing, time and attendance integration, and year-end W-2/1099 processing to a dedicated outside team built specifically for long-term care’s overtime rules, shift differentials, and multi-state compliance requirements. LTCPro provides this service to skilled nursing and assisted living facilities across the USA.
See what payroll errors could be costing you.
Get a free payroll audit and find out where the compliance risk really sits.
Accurate, Compliant, & Hassle-Free Healthcare Payroll
Let LTCPro's experts take payroll completely off your plate. We manage your entire payroll process with a focus on 100% accuracy and compliance, ensuring your most valuable asset—your staff—is paid correctly and on time, every time.
Effective payroll management plays a crucial role in the operational success of long-term care centers, including Skilled Nursing Facilities (SNFs), Assisted Living Facilities (ALFs), and Accountable Care Organizations (ACOs). LTCPro’s Payroll Services are designed to simplify payroll processes and ensure compliance with applicable regulations. By accurately managing employee compensation and providing timely payments, organizations can foster a positive work environment and boost staff morale. This attention to detail in payroll management not only helps to retain skilled employees but also allows facility management to focus on their primary mission: delivering high-quality care to their residents.
In the long-term care sector, efficient payroll management is vital for maintaining employee satisfaction and operational efficiency. By partnering with LTCPro, your facility can focus on delivering high-quality care while we handle the complexities of payroll administration.
Our Payroll Services Include:
- Full Payroll Processing: We handle everything—timecard data entry, wage calculations (including OT and differentials), and direct deposits.
- Tax Filing & Compliance: We manage all federal, state, and local payroll tax calculations, filings, and payments to keep you 100% compliant.
- Time & Attendance Integration: We work with your existing timekeeping system to ensure data flows seamlessly into payroll, eliminating manual entry errors.
- Year-End Management: We handle all W-2 and 1099 processing and distribution for your employees and contractors.
- Dedicated Support: Your staff gets a dedicated support line for any payroll-related questions, taking the burden off your HR team
Ready to take payroll off your plate?
Talk to a payroll specialist and see how a dedicated team handles the full process.
Your Payroll, Perfected
Free Payroll Audit
1 We review your current payroll process, timekeeping methods, and pay codes to identify risks and inefficiencies.
Secure Onboarding
2 Our team builds your facility’s profile in our secure system, mapping all pay codes and employee data.
Parallel Run
3 We run your first payroll in parallel with your old system to guarantee 100% accuracy before we go live.
Full-Service Management
4 We take over the entire process. You simply approve timecards, and we handle the rest.
Payroll Services for Skilled Nursing and Assisted Living Facilities:
LTCPro offers a full suite of payroll services tailored specifically for long-term care centers. Our services include:
Employee Lifecycle & Status Changes
- Benefits Calculation: Accurately calculating employee benefits, including health insurance, retirement plans, and other compensations.
- Processing Termination Checks:Ensuring timely and accurate payment to employees upon termination, including final paychecks and any accrued benefits.
- Processing Personal Action Requests (PAR):Managing employee requests for changes in status, including promotions, transfers, and other employment changes.
Deductions, Benefits & Reconciliation
- Payroll Analysis: Conducting thorough payroll analyses to identify trends, discrepancies, and areas for improvement.
- Maintaining Masters of Employee Insurance Deductions: Keeping accurate records of employee insurance deductions to ensure correct payroll processing.
- 401(k) Census Reports: Generating and maintaining reports related to employee participation in 401(k) retirement plans.
- Employee Insurance Reconciliations: Regularly reconciling employee insurance records to ensure accuracy and compliance.
- Maintaining Garnishment Records and Reconciliations: Accurately tracking and reconciling garnishments for employees as required by law.
Compliance, Tax & Regulatory Reporting
- Payroll Statutory Compliance: Ensuring compliance with all payroll-related laws and regulations to avoid penalties and ensure legal adherence.
- State Tax and Labor Statistics Reporting:Compiling necessary reports to meet state tax and labor statistics requirements.
- Monthly and Quarterly Tax Reports: Preparing and filing tax reports, including Federal Tax 941, Tax 20, and Workers Compensation Reports.
- Issuance of Year-End W-2 Forms and Returns: Preparing and electronically filing W-2 forms for employees at year-end.
- PBJ Electronic Submission: Managing the electronic submission of the Payroll-Based Journal (PBJ) to meet regulatory requirements.
- 1094C and 1095C Electronic Submission: Handling the electronic filing of 1094C and 1095C forms for Affordable Care Act compliance.
Time, Attendance & Scheduling
- Time and Attendance Administration (T&A): Efficiently managing employee time and attendance records to ensure accurate payroll processing.
- Scheduler Management: Providing tools and support for effective employee scheduling and shift management.
Benefits of Partnering with LTCPro for Payroll Services:
When you choose LTCPro for your payroll needs, you gain a dedicated partner focused on improving your facility’s operational efficiency and employee satisfaction. The benefits include:
- Enhanced Compliance: Our expertise in payroll regulations ensures your facility adheres to all relevant laws, reducing the risk of penalties.
- Reduced Administrative Burden: Outsourcing payroll services allows your staff to focus on resident care and other essential tasks.
- Increased Employee Satisfaction: Accurate and timely payroll processing contributes to higher employee morale and retention.
- Comprehensive Reporting: Our robust reporting capabilities provide valuable insights into payroll data and trends.
Understanding the “8 and 80” Overtime Rule for Long-Term Care Facilities
Skilled nursing facilities and other residential care establishments qualify for a special overtime exception under Section 7(j) of the FLSA, commonly called the “8 and 80” rule. Instead of the standard 40-hour workweek, eligible facilities can calculate overtime based on hours worked over 8 in a single day and over 80 in a 14-day period, but only if it’s set up correctly with a documented employee agreement beforehand. Misapplying this rule, or defaulting to it without the required agreement in place, is one of the most common and costly payroll compliance mistakes in long-term care.
Not sure if your facility is applying the 8 and 80 rule correctly?
Get a free payroll compliance review before it becomes a DOL finding.
Long Term Care Payroll Reports and Analytics:
To support effective decision-making and financial management, LTCPro generates a variety of essential payroll reports, including:
- New Employee Data: Comprehensive records of all new employee information.
- Employee Master Report: Detailed overview of all employee records, including demographics and employment status.
- Termination/Rehire Reports: Information on employee terminations and rehiring activities.
- Detailed Hour Analysis: Insights into employee hours worked, including regular time and overtime.
- Tax Reports: Comprehensive reports for federal, state, and local tax filings.
- Employee Deduction Report: Overview of deductions taken from employee paychecks for benefits and taxes.
- Check Register: Detailed log of all checks issued, including payroll and other disbursements.
- Benefits Report: Analysis of employee benefits participation and costs.
- SUTA/FUTA Tax Report: Reports on state unemployment tax (SUTA) and federal unemployment tax (FUTA) liabilities.
- Employee Gross Earnings Report: Summary of gross earnings for all employees over a specified period.
In-House vs. Outsourced Payroll: Which Is Right for Your Facility?
At LTCPro, we are committed to providing exceptional Payroll Services tailored for long-term care centers. Our comprehensive approach, expert team, and dedication to excellence make us the ideal partner for your payroll needs.
See how your current setup compares.
Book a free payroll process review and find out where the gaps are.
Frequently Asked Questions About Long-Term Care Payroll Outsourcing
What is the “8 and 80” overtime rule, and does it apply to my facility?
The 8 and 80 rule is a Fair Labor Standards Act exception available to hospitals and residential care establishments, including skilled nursing and assisted living facilities, allowing overtime to be calculated over a 14-day period instead of a standard 7-day workweek. It only applies if the facility has a documented agreement with employees in place before the rule is used.
What is PBJ reporting and how does payroll data feed into it?
PBJ, or Payroll-Based Journal, is a CMS requirement for long-term care facilities to submit staffing hours by job category each quarter, using payroll and other auditable data as the source. Because PBJ data is pulled directly from payroll records, errors in timekeeping or job coding at the payroll level can lead to inaccurate staffing submissions, which affect a facility’s star rating.
How does multi-state payroll tax work for facilities with staff working across state lines?
Facilities with employees who live or work across state lines, or that operate multiple locations in different states, must track and file payroll taxes according to each applicable state’s rules, which can vary in withholding requirements, unemployment insurance rates, and reporting deadlines. Missing a state-specific requirement is one of the more common sources of payroll penalties for multi-location operators.
Does outsourcing payroll reduce IRS and Department of Labor compliance risk?
Outsourcing doesn’t eliminate compliance responsibility, but it does reduce risk by putting wage calculations, overtime rules, and tax filings in the hands of a team focused specifically on healthcare payroll regulations, rather than relying on general-purpose payroll knowledge spread across HR and administrative staff.
How do 1094-C and 1095-C ACA reporting requirements affect long-term care payroll?
Applicable large employers, which includes most multi-facility long-term care operators, must file Forms 1094-C and 1095-C annually to report health coverage offered to employees under the Affordable Care Act. These filings depend on accurate payroll and benefits data throughout the year, so errors in payroll recordkeeping often surface as ACA reporting problems at year-end.
At LTCPro, we are committed to providing exceptional Payroll Services tailored for long-term care centers. Our comprehensive approach, expert team, and dedication to excellence make us the ideal partner for your payroll needs.
Ready to Take Payroll Compliance Off Your Plate?
Get a free payroll audit and see exactly where your compliance risk sits, before you commit to anything.