Many small business owners start out processing their own payroll. That might work when you only have a few employees, but it can become complicated and overwhelming in a hurry as your business grows. For example, you could have your mind on the dozen other things you need to do and accidentally miss a payroll tax filing deadline. While it was an honest mistake on your part, the Internal Revenue Service (IRS) will still assess a fine.
It is also challenging to keep track of hours, deductions, and several other unique factors for every employee on your payroll as you add more workers. Eventually, you will reach a point where you consider outsourcing payroll. At Capital Business Strategies, we think this is a solid business decision. We explain why below.
When Outsourcing Payroll Makes Sense for Your Small Business
Not having the time to do it themselves or the resources to hire an in-house payroll specialist are two of the biggest challenges business owners consider when deciding to outsource payroll. We also feel it is a cost-effective choice when your employees work a wide range of hours and earn vastly different salaries. Additionally, it’s a good idea to consider outsourcing payroll when you must pay employees living in more than one state. The payroll processing company keeps track of the various state regulations so you don’t have to concern yourself with it.
Besides saving yourself IRS fines and the ire of employees if you make a mistake, outsourcing payroll can save you money because you don’t have to purchase special equipment to process your company’s payroll. This includes a manual accounting program or computer, initial training, and ongoing training at a minimum. Keep in mind that you need to remain current on tax law changes, personnel changes and updates, and deadlines for federal, state, unemployment insurance, and workers’ compensation insurance as well.
Services You Can Expect from a Professional Payroll Processing Company
The following are just some of the services you can request from a business like Capital Business Strategies that offers payroll processing to its clients:
- Calculating tax and payroll obligations for every employee
- Printing checks every payroll period and delivering them to your business
- Providing regular reports to your human resources manager
- Automatic check-signing with a signature that you provide
- Direct deposit of employee paychecks
- Issuing an annual W2 to each employee so they can complete their tax return for the previous year
These represent only the most common services you can receive when outsourcing payroll. Another benefit of doing so is that you can request only the services you need and add more later as your company continues to grow.
Learn More About Outsourcing Payroll to Capital Business Strategies
Payroll processing is just one of the many time-saving services we offer our clients. We invite you to schedule a free consultation today to learn more about how you can partner with us for greater efficiency and profitability.