With the IRS penalizing one in three businesses for payroll and tax errors, it is clear that conventional methods of manual payroll will more than likely lead to costly penalty fees. Not only does your business have to deal with paying the IRS penalties, it is also losing money from the hours of time spent trying to figure out what you did wrong with the books. Just these facts alone are reasons why businesses are increasingly deciding to outsource their payroll.
While it may seem like a good idea to hire one of the larger payroll firms, it not only may it be out of a small businesses price range, but larger firms also tend to bundle their payroll management with additional services that are not needed and end up costing the business even more money. To select the right payroll management firm, it may be wise to construct a list of services that your business is looking to use, such as how much growth is the business anticipating, how many employees you have (full-time and part-time), or how much your business can afford to pay for outsourcing payroll. Questions relevant to your business can help you decide whether a certain payroll company is right for you, whether you run a restaurant or a non-profit organization.
A good payroll company will do these three tasks on time in compliance with state laws: pay employees, pay your payroll taxes and file payroll tax forms. Payroll management for your business should also include W-2 forms, online pay stubs, direct deposit and online time tracking. The more automated services an online payroll management firm has, the better. This decreases the chances of human error entering into the equation.
Several questions you may want to ask your prospective payroll management company may include:
- If they make a mistake, are they liable?
- How long would it take to fix that mistake?
- Are there additional fees for employee payroll when making additions or changes?
- Are there any additional fees for filing taxes in multiple states?
Remember; when you decide to outsource your payroll, there are still tasks that your payroll company will need you to do. Have all the necessary files on your staff, including name, address, wages, deductions, voided checks for direct deposit, and new W-4 forms if necessary. Make sure to always stay in contact with your payroll company, as well as look into the reports.
If you would like to save time and money, as well as dodge the chance of being penalized by the IRS for payroll errors, it might be time to try a payroll company you can trust. At Padgett Payroll Services®, we work with you to ensure that all your payroll services are completed accurately and on time. Contact us today!