PAYROLL PROCESSING & EMPLOYMENT TAX ADMINISTRATION

Sit back and let us do the dirty work

Even if you have only a few employees, you may decide to outsource your payroll; that is, turn over the task of payroll processing and other payroll responsibilities such as payroll tax reporting and administration to a payroll processing service. Here are some considerations to help you decide whether outsourcing is the right choice for your business. 

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Outsourcing Payroll Lowers Job Costs

If you are simply paying office workers, you can calculate pay by multiplying hours by rate, and determine if any overtime is owed. But if you are producing a product, you need to know the cost of labor on each product, so you can determine the cost of goods sold. This is a complicated process, more than a clerical person could probably handle.

So, if you want to be able to determine manufacturing costs, outsourcing payroll may be the only way to do that.

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Let the Payroll Processing Service Deal with the Multiple States and Localities reportings

If you have employees in more than one state, you must comply with requirements for paying and reporting state income taxes. If your business operates in different cities, you may also have local income taxes to withhold, pay, and report.

Withholding Calculations are Tricky

Calculating the amounts of withholding for employees is complicated. Briefly, you must:

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• Determine federal income tax withholding based on the employee's W-4(which can be changed as often as the employee wants)

• Determine state withholding for states with income taxes, based on the state W-4

• Determine FICA taxes on wages at 7.65 percent (and you must watch highly-paid employees to be sure their Social Security withholding is capped at the maximum for the year)

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And that is just for starters. Even for one employee, the process of determining withholding amounts can be time-consuming.

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Avoid Trying to Keep Track of Deadlines

Payment and reporting of payroll taxes (federal and state, withholding, FICA taxes, unemployment and workers compensation, and individual state payroll options) can be challenging, expensive if missed and intimidating.

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A missed deadline for either payment or reporting can cost you money in fines and penalties.

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Outsourcing payroll, even with just a few employees, is an option many employers consider early in their businesses. It might be the right option for your business, depending on your circumstances.

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Is Outsourcing Payroll Worth the Cost?​

Whether you have only one employee or 100, hiring a payroll service to help you with preparing paychecks, paying employees and reporting their and yours payroll taxes is always worth considering. A single fine or penalty for a missed payment or payroll tax report might be more than a whole year's worth of service. Setting up and tracking payroll for your business should not be your first priority. With our payroll processing services, paying your employees is one less thing you have to worry about. Ask us how our payroll processing services can help you minimize payroll reporting liability, save time and money today.