The benefits of high quality payroll processing could easily be enjoyed by any of the approximately 30 million small business owners in the United States. One of the problems with payroll processing is that it is incredibly complex and risky, not not to mention expensive. If a mistake is made, a business owner could find themselves having to pay a payroll tax penalty to the IRS, which could quickly turn into a nightmare scenario.
Payroll processing includes a number of different things. Business owners that manage their own payroll accounting tasks in house are typically responsible for totaling hours, gross and net calculations for every single employee, depositing payroll taxes and filing their tax returns on time and accurately. By outsourcing to a company that specializes in these kind of high end payroll services, time and money could be saved while also ensuring compliance of every federal and state tax regulation.
Those that do not outsource payroll processing could find themselves facing a very still tax penalty or levy. Nearly half (48 percent ) of all business owners that were assessed a tax penalty by the IRS admitted that it was quite valid. Some of these penalties can be assessed over a simple, careless mistake. The ideal payroll processing firm can be there to make sure that paperwork is filled out properly, deadlines are met, and answers for questions will be readily available if they are ever asked by the authorities.
Another thing that the ideal payroll processing firm can take care of is the administering of a 401(k) plan. These plans can be time consuming and complex, especially if they are integrated in with normal payroll processing. By outsourcing them to a third party vendor, one can help to further prevent costly errors, and free up even more of their spare time. The more one outsources, the more time they will have to focus on their employees and the core of their company.