The Benefits of Outsourcing Your Payroll
Want to grow your business faster? Start outsourcing your most tedious back-office tasks.
By Sujan Patel Co-founder, Web Profits@sujanpatel
Payroll is an essential part of your business, much like sales, customer service, and even content marketing. It's not just a twice-monthly annoyance or a bookkeeping task. Payroll is how you reward and retain employees, compensating them for the work they've done. When there are errors due to miscalculation, you'll wind up with dissatisfied, unmotivated employees.
Calculation errors are not the only concern, however. There are hundreds of tax codes and payroll regulations that you need to understand. A payroll mistake with any one of these items can be costly:
Classification of employees and contractors
- W-2 forms
- Tax deposit and filing deadlines
- Overtime payments
- State unemployment taxes
- Garnishments and levies
- Taxable items
And that's just to name a few. In 2013, the Internal Revenue Service issued 6.8 million penalties, totaling $4.5 billion related to employment taxes alone. The penalties aren't surprising when you consider that some 40% of small business owners don't use an accountant at all.
"There are so many little rules for a small business owner to stay on top of," says David McKelvey, a tax and business consulting partner at New York-based accounting firm Friedman LLP...[Read More]