Many small business owners advocate doing payroll in-house as it’s considered easy and keeps them involved. The truth is, doing your own payroll can be a time drain and is costly. While you’re not paying the nominal fee for a payroll service, you’re spending your valuable time on a task that is likely below your pay grade.
Below are a few reasons why you should consider outsourcing your payroll.
Tax Mistakes Are Common
Many small business owners do not have time to keep up with changes to tax rules and regulations. As a result, it’s common for small businesses to have incorrect or untimely tax filings. In addition to penalties, errors and late filings take a tremendous amount of time to straighten out (trust us we have done it for many clients). You never need a late tax filing that triggers IRS audits.
Your Time Is Valuable
If you spend less time managing payroll, you have more time for activities that impact growth.
Your Admin Who Does the Payroll Gets Sick or Leaves
A payroll company takes on the burden of making sure that someone is trained and processing your payroll. Time flies when you’re a business owner. In the three short weeks that your admin is out for emergency back surgery, the tax filing that they were planning on paying is missed and is now late. Eliminate this problem – outsource your payroll.
You can be versatile with your payroll if you hire a company who provides online payroll processing. With online payroll processing, employees will have 24/7 access to their information, such as current payroll stubs or previous years W-2 forms. This gives employees the ability to request changes to their withholdings, etc., without you having to take any time away from running your business.
Access to Experts
If you don’t know much about payroll, it’s easy to make mistakes. Non-routine items such as bankruptcy and child support withholding can be tricky. You can rely on a professional payroll company to know the ins and outs of these types of issues.
Salary is a sensitive topic. Ensuring your network is secure is something you may not think about. Private information needs to be safe from prying eyes and network disruptions.
We often see clients moving from using contractors to employees. Using a payroll company eases this transition.
As you weigh your payroll processing options, consider the benefits that come with outsourcing it. Saving time and money, headaches, securing your data, and allowing you to be free of the complexities associated with payroll are just a few of the benefits.
Have any questions about payroll or how to enter it properly in QuickBooks? Call BudgetEase at 216-333-1303.