The Advantages Of Hiring A Payroll Service Company
January 12, 2016
Outsourcing payroll operations can offer small businesses an attractive and valuable alternative to managing payroll internally.
Outsourcing payroll operations can offer small businesses an attractive and valuable alternative to managing payroll internally. Outsourcing payroll alleviates the time employees spend calculating payroll, determining tax obligations, preparing checks and providing management reports. Payroll firms can offer services such as automated signatures, envelope stuffing and direct deposit of checks. In addition, services such as retirement plans allowing employees to designate automatic deductions from their paychecks are available.
Tax regulations are constantly changing, making errors more prolific. Payroll companies can offer services to file state and federal payroll taxes for your business. This alleviates the issue of knowing the latest tax code, filing deadlines, deposit requirements, tax tables, government forms or payroll software version.
According to the IRS, 40 percent of small businesses pay penalties each year for late or incorrect filings and payments. To avoid this, many payroll service providers offer a tax guarantee, ensuring that customers will incur no penalties because the providers take responsibility any fines that may occur. This cost savings can greatly help in justifying the outsourcing of payroll services. Keep in mind, however, that while the payroll company may assume responsibility for penalties, you may be liable for any insterest charges.
Leveraging the expertise of a payroll company can alleviate the time-consuming process of having your employees managing payroll. Outsourcing can free your staff’s time to pursue more important value-added and revenue-generating activities. In fact, Inc. magazine identified payroll as the No. 1 task for small business to outsource. Because payroll management is a time-consuming activity, removing this burden can allow your employees to focus on more productive items within their realm of expertise.
Payroll firms can offer reports such as summaries on earning statements, payroll by departments, time sheets, expenses and a host of other reports.
If you have any questions, do not hesitate to contact our Payroll service.