Business owners are sometimes challenged when it comes to preparing the payroll for their employees especially If they don’t have accounting skills or they have not experienced preparing payroll before. It can be challenging and confusing to prepare a payroll for a small business owner. It is also a fact that if you do not make exact entries in your tax returns, the IRS can impose penalties on your business and this is why business owners also get intimidated when processing payroll. Many business owners are willing to pay experts just so to make it right when processing payroll. If you want to let the experts do it for you, you can outsource your payroll processing or have an in-house payroll unit to do the payroll for your small business.
Payroll outsourcing is perhaps your best option as small business owners for the reasons given below.
With their training is accounting and payroll procedure, CPAs who will do your payroll processing will make sure that it is done correctly. 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. This is a great expense to your small business which can eat out your business profits.
Outsourcing your payroll processes will still give you the same CPA accuracy. Outsourcing your payroll is not expensive at all compared to hiring an in-house accountant. With its accuracy and cost-effectiveness, outsourcing your payroll is the best option to take. Payroll processing does not have to eat up your business profits so this will not happen if you outsource payroll processing.
There are a lot of business owners penalized each year by the IRS for paying or filing their payroll taxes incorrectly. With penalties to pay for erroneous payroll tax returns, trying to save money doing the payroll tax preparation by yourself will defeat your purpose. Payroll outsourcing companies automatically calculates, pays, and files your small business payroll taxes for you. Because of their automated processes, you will never be late for your payroll or for filing your payroll tax returns.
If you use outsourced payroll services then you will find out that the process is very simple and easy. You simply need to log into your outsourced payroll service’s secure online portal and enter the hours each employee worked during the pay period, and after submitting the details, 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. Your payroll services prepared these forms for your employees which you can simply print from your computer.