Posted by : Daniel Stoica in (Blog, Business Tax, Business Tips, Federal Taxes, Income Taxes, Tax Help) On: September 12th, 2011
Tagged Under : accountability, accounting professional, accuracy, cost, Daniel Stoica, IRS, laws, outsourcing, payroll, regulations, reliability, security, speed, tax professional
Many small business owners find themselves even busier when they hire employees. Adding employees brings additional paperwork and oversight, and most small businesses just do not have the funds to hire people to handle payroll. However, there are many companies out there that offer payroll services, at a reasonable price, to small business owners. Following is a list of 7 ways outsourcing payroll can save your small business money.
The affordability is the main reason to outsource your payroll. A department on site that is devoted entirely to payroll can be costly. It costs to hire and train new employees, not to mention the hourly wage. There is also the cost of printing checks, keeping track of taxes and handling a payroll bank account. There can be significant savings by hiring a company that handles all of this for you.
Payroll mistakes can cost your company in a major way- not just with the business itself- but mistakes with takes could cost you in IRS interest and penalties. An experienced payroll service provider is less likely to make these kinds of mistakes, and they are usually responsible for handling mistakes that they make.
Payroll service providers work on nothing but payroll, so the service is much quicker than someone who would work on site because your payroll person may work on several other projects aside from payroll. Payroll service providers keep track of your regular employees as well as temporary or seasonal employees.
The quality of work done by a payroll service will most likely stay the same, accurate and professional. These companies specialize in payroll alone, and only hire experience professionals.
Laws and Regulations
Tax laws change regularly. It’s difficult to pay for training for an onsite payroll employee to keep up with these new laws. Outsourcing your payroll will eliminate this extra cost.
Payroll companies are responsible for any mistakes they make. If they do make a mistake, they must fix it.
There is always someone who will try to take advantage. Hiring someone to work on site means the business owner will have to keep an eye on their employee to make sure they don’t make mistakes or check for dishonesty. There is usually little worry in this with a reputable payroll service provider. Their employees are stringently checked before they are hired.
Outsourcing payroll services is a real time and money saver for small business. These are good reasons to use a payroll service.