Payroll limits and responsibilities

Arketa Payroll automates calculations, filings, and payments, but a few things stay with your studio and a few things aren't supported at all. Read this before onboarding so there are no surprises at your first run.

What your studio is responsible for

• Maintaining accurate worker information
• Classifying workers correctly as employees or contractors
• Approving payroll before your deadline
• Making sure your funding account has sufficient funds
• Registering for required state payroll tax accounts
• Remitting post-tax deductions to the appropriate provider or agency
• Complying with any garnishment order you receive

Arketa's filings are only as accurate as the information your studio provides. Tax authorities hold employers responsible for the accuracy and timeliness of their filings, which is standard across all payroll providers.

What Arketa Payroll doesn't support

Payments

• Paper checks. Workers are paid by direct deposit only.
• Owner's draw
• Workers' compensation payment transfers

Deductions and benefits

• Child support paid to tribal support agencies. It can be set up as a post-tax deduction instead. Child support garnishments to state agencies are supported and remitted for you. See Payroll taxes and filings.
• 401(k), IRA, or other retirement plan contributions
• PTO tracking, policies, or accruals. Time off is managed by your studio. Salaried workers are paid their salary and hourly workers are paid the hours they work.

Taxes and filings

• Automated remittance of New York PFL, New York SDI, and Hawaii SDI. These are withheld, but your studio pays the insurance carrier directly.
• A small number of local employer taxes. See Payroll taxes and filings.
• New hire reporting for contractors. Your studio files these where the state requires it.
• Tax withholding or deductions from contractor payments. Contractors are paid in full and handle their own taxes.
• ACA reporting

Workers

• Workers with addresses in Puerto Rico or US territories
• Household employees

Integrations

• Direct integrations with QuickBooks Online or Xero. There's no accounting sync for Arketa Payroll.

What Arketa doesn't advise on

Arketa doesn't provide guidance on worker classification. Whether someone should be a W-2 employee or a 1099 contractor depends on how your studio operates and on local labor laws. Check with your accountant or legal advisor.