If you have no talent for accounting or have not experienced preparing payrolls before, then it would really be a challenge to prepare the payroll for your small business employees. Without a good accounting background, it would really be a challenge for small business owners to do the payroll by themselves. If your payroll tax returns have many errors then you will be penalized by the IRS and this fact alone make payroll processing such an intimidating task for business owners. Many business owners are willing to pay experts just so to make it right when processing payroll. There are two ways to have accurate entries in your payroll tax returns, and they are to either outsource your payroll processing or do it by traditional means or through an in-house payroll division.
Below are some of the reasons why small business owners will benefit from payroll outsourcing.
There will be no problem with the correctness of your payroll if a CPA does it for you since they are experts in accounting and payroll processes. However, it can be very expensive to keep a in-house payroll processing department by hiring a CPA since they charge hundreds of dollars for every payroll run. So having a weekly payroll will increase the amount four times. Your business profits will get small with this expense.
The benefit of outsourcing your payroll processes is the accuracy of your payroll since it is also processed by CPAs. The amount you pay for payroll outsourcing services is only a small fraction of the amount you pay an in-house accountant. Payroll outsourcing is not only accurate but it is cost effective as well. Payroll processing does not have to eat up your business profits so this will not happen if you outsource payroll processing.
The IRS penalized business that have erroneous entries in their payroll tax returns. With penalties to pay for erroneous payroll tax returns, trying to save money doing the payroll tax preparation by yourself will defeat your purpose. If you outsource to payroll services , they can automatically calculate, pay, and file your small business payroll taxes for you. You will never be late for your payroll or filing because their process is automated.
Payroll processing is easy with outsourced small business payroll services. Once you are in the online portal of your payroll services company, you simply need to enter the hours that each employee worked during the pay period, submit, and your payroll is done.
If you are a business owners, then it is your duty to provide the W-2 or 1099 form to your employees or contractors. Keeping track of these forms and filing are all done by your outsourcing services. W-2 and 1099 forms can be printed for your employees on the spot prepared by outsourced small business payroll services.