A recent survey that was conducted by Actionable Research found out that 75% of CPAs working for small businesses had the view that their clients did not have the required expertise to handle their payroll. Another 68% suggested that their clients could spend their time better working open the other demands of the business if they outsourced payroll.
While there are businesses that choose to process payroll internally, there are many small businesses that are increasingly becoming aware of the importance of small business payroll service. This is because it enables them to focus on strategies and processes that can directly affect their business. Here are some of the reason why small businesses could benefit from payroll outsourcing
Few if any small business owners have the expertise to handle the complicated government regulations. As a business owner, you are legally responsible for any misrepresentation or failure to provide accurate information of employment taxes to the relevant authority. Any mistakes will cause penalties and audits. According to the IRS, over 40% of small businesses pay penalties of over $800 every year in the United States. This is a situation that you will not ant as a small business owner. With government rules and regulations constantly changing, it is important for small business owners to remain ahead of these changes.. Payroll services for small business always ensure that they remain current on the rules and regulations.
It doesn’t matter the number of employees working for your business, it can take a great deal of time and attention to attend to the demand of hr payrolls. Every end month, the business owner will need to input a considerable amount of data while double checking for any keying errors. While you decide to outsource these services, you free up the precious time. It is not necessary for employers to make contact with their customer service representative at the end of the pay period.
Time saved wills translate into money saved. You can consider the amount of time that will be required for:
Calculating payroll at the end of each period
Printing, singing as well as distribution of paychecks
Calculating and submitting returns and payroll taxes to the government
Generating reports for use by accountants and other departments
It can be difficult and time consuming for small businesses to find payroll small business. Payroll function usually involve everything from determining the wages of employees as well as withholding tax, updating sick pay and vacations and deducting payments contributed by employees for benefits. Due to how complicated payroll can be, may small businesses choose to hire the service of a payroll service?
Generally, the cost of outsourcing payroll service is usually half of what an in-house service can cost. Hiring an outside service can also help to eliminate the need for a full time payroll manager. You will also have the free time to work on other aspects of your business. Other key advantages of hiring a payroll service include:
Most of the [payroll services also deal with employment retirement plans as well as direct deposits. There are some that even go to the extent of providing reports, calculating tax obligation of employees and preparing the W2 forms for the client.
Payroll service providers are aware that they are supposed to provide accuracy job if they want to remain in business. You can count on the payroll service if you would like to remain update on the new tax laws related to the payroll.
When you outsource your payroll solution, all you will need to do is to call them to give the salary amounts of employees, hours and deductions and the company will process the check. Most of the payroll processing service will also allow you to update the employee information on their website.
Payroll processing can be a complex and a potentially risky operation of the business. Even when you trust employees, the risk of identity theft, funds embezzlement or the company records being tampered with are always real. This risk is always higher when using in-house patrol software. How safe & secure the payroll data can be on the network or server of the company? This is a nagging question that can consume a lot of your attention and energy. On the other hand, payroll service provides a safe haven that ensures that payroll data remains safe. Not only are there redundant servers as well as multiple server locations but the state-of-the art system offers a solution for storing as well as protecting of data.
Payroll function involves several federal and stare obligations. When you hire an outside company, it can save you the money on legal fees while putting compliance in the hands of a business that understand the legal issues.
Most of the payroll processing services have staff who understand payroll processing inside out. These people understand the complexity of the payroll taxes and how to stay compliant with government regulations. Since this is what they are trained to do, they can provide guarantee for their services. This means that you can rest with peace of mind as you are aware that your payroll is being handled by an expert.
Before you hire a payroll service, get at least 3 quotes from reputable companies. Most companies will make it possible for you to do this through their website. You should also speak with a small business owner who already uses their services.