Payroll service solutions can save you time and money–not to mention a few headaches. With their resources and expertise, it’s a smart business decision to let an outside, professional firm manage payroll service. They can ensure you pay your employees correctly, punctually, and securely. In fact, California CPAs recommend using a professional payroll service to manage your employees’ payroll for a couple of reasons.
1. Penalties for Mistakes
It is much more costly to be penalized by the IRS for payroll mistakes than to pay a payroll service provider. In fact, the IRS penalizes roughly 1 out of every 3 business owners for payroll errors. Doing it yourself might mean accidentally classifying employees and contractors incorrectly, or making deadly payroll mistakes that could put your business at risk. >
2. Cost Management
Outsourcing payroll service solutions is also much cheaper in many cases than to employ and retain day-to-day in-house payroll staff for your business. Since most payroll service solutions firms operate at a high volume, they are able to charge much less for their services than an independent contractor or a staffed employee would.
Outsourcing payroll tasks frees up management to focus on the core business. Yes, payroll is extremely important but it’s a necessity best left to those that make that their business as opposed to using your limited time and resources on something that doesn’t grow or enhance your own business. Payroll service staff have experience and expertise making payroll service solutions faster and more convenient for everyone.
It’s important to ensure accurate record keeping and outside payroll service solutions are well-versed in the changing tax legislation and obligations that are associated with payroll. Business owners need to make sure they are following their local state laws when it comes to hiring and reporting wages for different types of employees, or making sure they manage vacations, overtime, and commissions correctly.
Of course, there are many different types of payroll service solutions out there and it’s important to find the one that best suits your needs. Business owners with at least 50 employees with high-frequency pay periods, such as those in restaurants, hospitality or professional services looking to save on overhead costs in 2013 would do good to look into payroll service solutions that provide a comprehensive suite of products and services such as tax, HR support, accounting and time labor management, and pay-as-you-go workers’ comp insurance like PAYDAY Workforce solutions.