When meeting with new business owners we want to find out how they are handling their payroll. Sometimes even more importantly than a good accounting system we want to make sure that a strong payroll system is in place. The “I will try it on my own” mindset can be very costly and we have seen many be damaged financially by errors in payroll.
Why is payroll a service we recommend outsourcing?
First, there are a lot of payroll filing requirements that if you are not a payroll professional can easily be overlooked. Depending on the amount of payroll, deposits to IRS and State authorities may need to be made weekly, monthly, quarterly, or yearly. With a growing business these deadlines can be difficult to keep up with. Second, payroll can be time consuming. As the business owner you want to focus on running your business, not managing payroll that can take up hours each week. Lastly and most importantly, errors can be extremely costly. Payroll taxes are treated like trust deposits in the IRS and State department’s eyes. If these are not remitted they are deemed “mishandled” and can result in large late filing or late payment penalties. One late filed form alone can cover the cost of a payroll service for the entire year. If a payroll company is preparing the forms they will cover any penalties and interest for incorrectly or late filed forms.
Who do we recommend?
Straightforward Small Business or Single Owner S Corporations
Additional Hand Holding or Complex Businesses
If you are currently handling your own payroll and would like to work with a payroll professional, let us know!