Of all the tasks small businesses have on their plates, processing payroll is hands down one of the most complicated and time consuming. You must determine wages for each employee, figure out how much taxes are to be withheld, update vacation and sick hours and pay, and deduct employee contributions for benefits. Could you use some help? Here are some of the top benefits of using a professional payroll service in Jamestown, ND:
- Cost: If you were not trained to do payroll duties but try taking them on anyway, you will likely find the whole process complicated. It’s for this reason that many small businesses—especially those with 20 employees or fewer—choose to use an outside service. Outsourcing your business’ payroll administration can actually cost half of what it would to have an internal employee do it in-house, and it eliminates the need for a full-time payroll manager.
- Convenience: An outside payroll service is more convenient than you might think. A good payroll firm has real people in their office to take your telephone calls and record your business’s payroll information as needed, whether you pay your employees every month, bi-monthly or weekly. Simply give them the hours worked, the deductions and the pay rates of employees so they can process the checks. As an added convenience, many payroll firms will let you update employee payroll information online.
- Accountability: Payroll has to adhere to strict IRS rules and regulations. To avoid unintentional legal mistakes, many businesses will outsource their payroll needs, which often shifts responsibility for legal compliance onto the outside payroll service. Handing over small business payroll needs to a payroll company can save you from having to pay IRS penalties for things like improperly filed payroll taxes.
- Functionality: Another great thing about professional payroll services is that many of these companies are also available to handle other financial matters, including employee retirement plans and employee direct deposits. Additionally, many will provide their clients with management reports, calculate employee tax responsibilities and prepare W2 forms.
- Accuracy and compliance: Professional payroll companies strive for accuracy, because if they don’t do an accurate job, they will lose clients. For this reason, they stay up to date with new tax laws that pertain to employee payroll. Legal compliance is also important. Payroll comes with a host of complicated state and federal legal obligations, and hiring an outside company hands off legal compliance to someone who understands the legal issues and who can save you money on legal fees.
- Productivity: Ultimately, you want to spend as much time as possible growing your business. So, instead of trying to do payroll yourself or assigning payroll duties to an already busy employee, consider moving payroll duties to a third party. This allows more time for you and your staff to focus on more important parts of your business. Furthermore, an off-site payroll service has the expertise and software to complete your payroll needs more quickly.
Contact the knowledgeable team at Craig S. Hanson, CPA to learn more about the advantages of using a payroll service in Jamestown, ND!