Are you a small business owner who is handling payroll processing yourself? Payroll may seem like something that you can operate on your own. However, there are many demands that come along with handling payroll. Some demands include keeping up to date with payroll laws, tax deposit rules, and filing state and federal mandated forms on time so you are not penalized for missing a deadline. By partnering with a payroll provider, a small to medium-sized business can reap significant benefits, including cost and time savings, having access to expertise and increasing the level of compliance with regulations. Outsourcing payroll provides many benefits and allows the business owner to focus on aspects of the business that directly affect its future.
Processing payroll is time consuming. It requires a lot of time that many businesses do not have. From entering data to researching new laws or updates, the amount of time that payroll takes up is not desirable to many business owners. Outsourcing payroll tasks allows you and your employees to offer their full attention to the direct needs of the business.
Outsourcing payroll can be more cost effective than hiring and training an in-house payroll specialist. The cost savings include the avoidance of not only salary and benefits for an additional employee, but also other associated costs such as office space, equipment and specialized software. Having a payroll expert on your side can also reduce the chance of making costly errors and running into potential financial penalties.
Payroll is a complex and sometimes confusing business operation. Federal, state, and local payroll tax laws are becoming more and more detailed. Without having the time to research, learn and apply yearly updates, you run the risk of calculating or filing your payroll taxes incorrectly or late. By outsourcing payroll to a company that specializes in payroll processing, you can rest assured that this important business task is being handled by experts who are up-to-date with the latest laws and regulations.
Your payroll contains sensitive information about your employees, including their social security numbers and bank account information. Companies can run the risk of an employee tampering company records, embezzlement of funds, or identity theft. Even with the most trusted employees, business owners should be cautious. In-house payroll software is also something you need research carefully to see how secure your payroll data really is. Choosing to outsource payroll with a reputable company can reassure you that your confidential payroll data is secure at all times.
Payroll operations can be a difficult subject to learn and understand. Receiving payroll reports tailored to your company is a significant benefit when considering outsourcing. A company that offers payroll services has the ability to create reports that you need for your business and should be able to help explain data in a way that you will understand. Some examples of reports you may need include payroll summaries, tax liability reports, general ledger reports, union reports, and many others that can be customized to your business needs.
It is important to make sure you are hiring a company who has the ability to provide online payroll processing. Online payroll processing ensures that your employees will have 24/7 access to their information such as current payroll stubs or last year’s W-2 forms. Employees are able to request changes to their withholdings, etc., at their convenience.
A company providing payroll services can take care of any reporting issues that come about. Some examples include child support audits, Worker’s Comp audits, 1099 processing, W-2, and Wp3 processing, preparation of federal and state registration forms, or any other issues that may arise. This will save your business valuable time and energy.
Hiring professionals who have expertise in payroll will put your mind at ease. You can feel confident knowing that they will take care of every last detail associated with payroll processing. Payroll errors can be costly, both in terms of time and money. By outsourcing payroll to a company that specializes in it, your small business can ensure that the payroll is being handled accurately and reliably.
Overall, outsourcing payroll can provide many benefits to your business. Consider all of the benefits that come along with it. Some benefits include saving time and money, securing your data, and allowing you to no longer worry about handling payroll functions and all of the complexities that come along with them.
David Mills CPA, LLC provides expert accounting and financial services for both small and medium businesses, as well as to individuals. Our CPAs can assist you with a multitude of accounting services in Peoria, IL, Morton, IL, and the rest of Central Illinois.
Contact us today to see how our payroll services or any other financial services, can benefit your business.