Why Outsource Payroll Processing? Here are Three Reasons Every Small Business Should
Do you run a small business? If so, paying your employees may be more difficult than you had originally anticipated. With the amount of paperwork it can take for a business owner to complete these tasks, it can almost be more time consuming than running a small business. Adding employee benefits into the mix can make it even more difficult.
However, there many companies that deal with payroll processing for small businesses exclusively, and they can simplify the process of distributing paychecks and benefits for your employees. If you’re unsure about whether or not you should outsource your payroll, here are three factors you may not have considered previously about payroll processing for small business:
1. There’s a lot of paperwork to be completed before you start processing your payroll. For starters, in the United States, you must obtain an Employer Identification Number (EIN) in order to report your information to state and federal agencies. Additionally, you also need to check with your state and local authorities about other identification you may have to get first. Employee paperwork, such as W-4s, will also need to be processed. A payroll service company can complete some or all of these steps for you, which is especially useful for businesses that are expanding or just starting out.
2. You have to consider taxes, as well. According to the Internal Revenue Service in the U.S., approximately one-third of all employers make some sort of payroll error. In the event of an audit, this can be an extremely costly and time-consuming process. In addition to cutting checks, maintaining records, and handling employee benefits, an outsourced payroll processor can also file taxes and make sure you are prepared in the event of an audit to avoid penalties. Because payroll laws and tax codes change on a regular basis, having these professionals do your taxes and handle legal issues for you can prevent a lot of frustration on your part.
3. Payroll processing for small business can take up a lot of time. Whether you have a human resources professional working for your company or not, your employees won’t have to spend time on intense payroll tasks, and neither will you. Outsourcing to payroll processing services can save a lot of time on day-to-day tasks and bookkeeping responsibilities, so you and your employees can focus on business-oriented goals instead of paperwork.
Have questions about payroll outsourcing? Be sure to contact a payroll service provider about your options. Doing so will allow you to run your business more smoothly, and save on average an estimated $2,600 on in-house payroll costs. If you have additional questions, leave them below in the comments. See more: www.ioipay.com
