One of the things that businesses notice as they grow is that tasks like payroll begin to take up more time. In fact, payroll services can turn into a full time job and many businesses will bring on an employee or an entire payroll team to handle the new tasks. The other option, however, is to hire a business management services company that handles all company payroll services. Either way, it is important to dedicate the payroll taxes to a specific person or company for the following reasons.
For easy onboarding of new employees
A single new employee often takes hours to onboard. After the initial interviewing processes, the employee is brought in for orientation. Here, they learn about their job expectations and the policies of the business. They will also fill out necessary paperwork including employment contract, pay schedule, direct deposit form, and tax forms. These forms are important in registering the new employee and inputting them into the payment system. If you have a dedicated payroll employee or outsourced payroll company, you can outsource all of these tasks.
For confusing payment processes
Payment can get confusing in a larger business. One group of employees might prefer to receive physical checks in the mail, while another group of employees prefers direct deposit. To make things even more confusing, different employees will have different deduction requirements. One employee might request that you withhold a larger portion of their paycheck to help with end of year taxes, while another wants as much money as possible on each paycheck. With so many confusing payment processes, mistakes are more likely. One of the potential problems facing a small business owner is payroll processing because it can be complex, risky, and expensive if you make a mistake.
To handle all tax filings
Tax forms are expected in January. Failing to provide your employees with these forms can result in fines. It can also make employees frustrated because they have less time to file their taxes. Figuring out employee taxes can be especially confusing. The best payroll service will also calculate payroll taxes. So, if you are going to hire your own payroll team, make sure they also have payroll tax experience. However, over 85% of certified public accountants recommend that small businesses employ the expertise of professional payroll providers.
To handle unique situations
There are a variety of unique payroll situations that could arise in a workplace setting. For example, medical is often offered to full time employees. You also have to factor in these medical benefits and make sure that they are not taxed to the employee. Medical record services can be expensive on their own, so finding a payroll company that will calculate payroll tax deductions and handles medical record services can be extremely useful.
Many payroll companies also handle basic human resource tasks. In addition to payroll services, a payroll provider can offer HR management, ESA, and OHSA compliance and government remittances. These tasks can be invaluable because a single find from OSHA or ESA can be potentially damaging to a business?s finances. However, it is important to note that not all payroll companies provider HR services, so if this is important to you, find one that does.
Payroll is a very confusing and complex process. Without having a dedicated employee or team, mistakes are likely. Even a single mistake can lead to costly fines and problems with the government. In most cases, it is best to hire a payroll company that handle all payroll taxes, tax deductions, medical record services, and even HR tasks.