The new year is the perfect time to implement change, and as a business owner, one thing you might consider doing in 2014 is outsourcing your payroll. There are many benefits to doing so, particularly if your business is currently small, but steadily growing. A payroll company can assist you with keeping accurate records, communicating relevant changes to employees, calculating payroll taxes, and so much more. Below are some additional reasons to consider outsourcing your payroll.
Giving your employees the option of having their paycheck directly deposited to their bank accounts is extremely difficult if you are not using an outside payroll service. Furthermore, by outsourcing your payroll, you can eliminate the potential for human error when reading timesheets and reconciling individual payroll checks each month.
The IRS reports that 40 percent of small business pay a penalty of approximately $845 each year due to late or incorrect tax filings or payments. You will find that the majority of national payroll companies will provide you with a guarantee that in the event of an error, they will bear the burden of any penalties involved.
A payroll company will take on the task of keeping up with the latest tax regulations, withholding rates, and government forms. You can relax knowing this stressful task is off of your plate. Additionally, they will be able to provide you with monthly or quarterly reports verifying your payroll taxes are being paid correctly and on time.
Calculating and processing payroll manually is a time consuming task with no room for error. By outsourcing your payroll and removing this duty from your Human Resources staff, you free them to dedicate more time to helping your business excel through staff training and development.