The best payroll services do much more than calculate paychecks. They also handle workers’ compensation, 401(k) administration, and detailed payroll reports. Having a professional handling payroll saves you time and money. It also protects your business from costly penalties related to wage and hour laws or tax compliance.
Accuracy
Getting payroll data entry and review right the first time can be a considerable challenge for any small businesses that may not have the luxury of hiring a payroll specialist in-house. However, mistakes can cost a company more than just money. Incorrect paychecks can lead to worker frustration, lawsuits, and damage to the company’s reputation. And if tax filings are incorrect, it can result in heavy fines from the IRS and state agencies. Payroll services in Atlanta can help minimize these errors and ensure all the information is accurate. Often these services can do things like categorize employees, disburse wages, manage overtime wages, provide benefits statements, file ranges of taxes, and record employee hours. This accuracy helps to eliminate costly errors, saves the company time and money, and keeps employees happy and productive. The time savings can also be significant because payroll specialists spend fewer hours on the job, which can reduce overhead costs. When comparing different payroll providers, it’s essential to understand the pricing model. Find out if they charge a base fee with an additional per-employee fee or if they have an affordable subscription pricing structure that can easily be budgeted into operating costs. Also, ask whether or not they have a customer service team to answer any questions and help with any issues that might arise.
Time
Payroll is complex, time-consuming, and costly to get wrong. It requires expert knowledge of tax laws, labor laws, and business accounting. Even if you delegate the task to one of your employees, it can take up too much of their day and lead to costly errors. Outsourcing payroll to a professional company can save money by freeing up your human resources for other tasks. It can also cut costs for your business by allowing you to offer employees direct deposit, saving you the cost of checks and postage. Many online payroll services also include integrations with various systems your business may use. This includes accounting software, time and attendance systems, and PTO (paid leave) management solutions. This can simplify processes and eliminate the need to manually enter information from one system to another, which is prone to errors. Most payroll services also offer a tax guarantee, which means they will take care of any errors when filing and paying your taxes. This can save you time and headaches when dealing with government compliance issues, especially as tax law evolves. You can save money by not paying a costly accountant or CPA to help with your taxes. This can amount to significant savings for small or middle-sized businesses and startups on a budget.
Taxes
Payroll services can calculate and withhold appropriate federal, state, and local payroll taxes. They also file and pay payroll tax reports on time to avoid fines and penalties. Some offer a guarantee that they will point and deposit your taxes correctly. If you hire a payroll company, look for one with affordable rates and excellent customer reviews. Ask the company how much they charge for their service, how often it will run your payroll, and if there is a contract requirement. Some services are billed monthly, while others are based on the number of employees you have. Using a payroll company frees up your valuable time and money, so you can focus on growing your business. But remember that you can still be liable for employment taxes if the company you hire does not accurately report or remit the required amounts.
Compliance
Your business must comply with various laws regarding payroll, such as federal income tax withholding and submitting employee W-2s. The IRS will penalize your company if you fail to meet these regulations. Payroll services providers can make sure your business stays on track. Using a payroll service provider can also help you save on compliance costs. A good payroll manager will handle government declarations, taxes, compliance calculations, and more so you can focus on running your business. They will also ensure that any retirement benefits, such as 401(k)s, are deposited correctly and promptly. This can prevent costly IRS audits and penalties. Another way to reduce compliance costs is by automating your payroll process. Using software that matches projects to employee hours, incorporates tips and other types of compensation into total wages, and makes reports easy to read will help you stay compliant. One of the biggest challenges for small business owners is time management. Trying to perform payroll functions or hiring someone for you takes up valuable time that could be spent on other tasks. In addition, mistakes and miscalculations in a manual system can result in additional costs to your business. Using payroll software will reduce errors and the time and money spent fixing them.
