There are many services available to small business owners, but perhaps the most overlooked is a payroll service. Many small businesses choose to forgo this surprisingly essential tool. If you're a small business owner, you're wondering why you should use a payroll service. Here are six reasons to hire a payroll service:
Outsourcing payroll frees up a lot of time. If you have thirty employees or more, you and your managers can spend many hours each payday on payroll tasks. By hiring an outside company to do payroll, your managers are free to promote the business, supervise employees and work on tasks that make money for your business.
Not only can an outside payroll company save you money in labor costs, but they can prevent you from getting in trouble with the IRS. In 2013, businesses paid $4.5 billion in payroll tax penalties. Payroll services make sure you pay the taxes that you're supposed to on schedule to avoid penalties.
When you leave payroll up to an employee you're risking theft of funds, embezzlement, and identity theft. Keeping payroll in house leaves you and your business vulnerable, and you may not discover embezzlement until it's too late. A payroll service is run by a separate company who has its own reputation to maintain. Payroll service companies are audited and regulated to prevent theft.
A payroll service will keep your company's information accessible and organized. You might not have time to organize the data and keep up with technology, but a payroll company can. You won't have to worry about losing track of taxes, schedules, or pay stubs.
5. Employee Convenience
Payroll services make getting paid much easier and convenient for employees. Payroll companies set up direct deposit for employees. They can also allow your employees easy access to their pay stubs and paycheck history. They also make it easy for employees to invest in retirement accounts, and make set transfers to their savings accounts when they get paid.
Just like every other aspect of your business, your payroll can change at any time. Your number of employees can increase dramatically, payroll laws change, employee hours and salaries vary. A payroll service quickly and efficiently handles any change, including last minutes ones. They are much more flexible and adaptable.
These are six reasons to use a payroll service. Contact payroll service company like Waggoner Frutiger & Daub CPA's to learn more.Share
23 June 2015
I have always dreamed of opening my own beauty salon, but never seemed to have the money to make that dream come true. I decided that it was time for me to hire an accountant to help me create a savings plan and to assist me in calculating how much money I would need to open my salon. I found out all about what it takes to start a business and a lot of great advice about what I can do to save the money I need to make it happen. If owning your own business is something you are dreaming of, my blog can help.