Payroll as a term on its own refers to the simple act of paying your employees, along with keeping a track of all the employee information. However, the process is far from being simple and hassle-free, and the consequences it can have if not managed properly can be dire. Thinking that we are exaggerating? Let us give you two straight-forward reasons for handing over your payroll requirements to experts.
Mishandled Payroll Brings IRS Penalties Right To Your Doorstep:
Payroll mistakes can be very painful in more than one way. It can anger your employees as they might not receive their money on time or it can not raise red flags with the IRS for not reporting timely or accurately to the government. As per a report from the IRS, about 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings and payments. Mistakes lead to audits and penalties—situations that no business wants or needs. On top of that, the Government rules and regulations are ever-changing and you cannot be expected to stay on top of all of them.
On the other hand, it is the job of a professional payroll provider to stay current with rules, regulations and changes in tax rates. In addition to that, these outsourced payroll providers have a staff dedicated to keeping up to date on all of the changes that could affect your payroll. So it does not become your headache to ensure that you stay in compliance, you can just hire experts for shouldering that.
Your Time & Productivity Gets Tangled in The Payroll Web:
Keeping track of payroll is a very complicated process as it requires updating benefit deductions, garnishments, new hires and terminations, paid time off and lots of other things. What makes it more frustrating is the constantly changing federal and state regulation changes. Preparing W2s and ensuring that they are sent out timely takes out a significant time out of your workforce. It does not matter how many people are employed by your business, attending to payroll demands a great deal of time and attention to detail. And you make one mistake, and it all goes down the drain.
The easier option is outsourcing payroll that allows you to concentrate on your core business. The repetitive tasks associated with payroll work should not be hours taken away from your or your team’s productivity. Outsourcing payroll immediately frees up precious time & gives way to productivity.
As a small business owner you aren’t an expert in the challenging world of government tax regulations. Nevertheless, you are legally responsible for any cases of misrepresentation or a failure to accurately report employment taxes to federal and state government agencies. Fortunately, there’s a very simple way for you to not be burdened by that. Simply outsource to a credible accounting firm, like us! We not only handle your payroll but also train you on how to do the payroll so that you become more cost effective over time.