Three Ways a Payroll Company Can Benefit Your Bottom Line
March 30, 2018
Whether you have two employees or two thousand, you know that payroll processing is more than a bi-weekly bookkeeping task. In fact, payroll is much, much more than simply writing checks, and it requires that you stay in the know on taxes, deductions, changes in payroll laws, year-end documentation, and more. For many business owners, payroll has shifted from something handled in house to something gladly outsourced. And the good news for business owners is, when chosen correctly, a payroll company can provide a cheaper, simpler way to pay employees, file associated taxes, and perform a host of other duties.
If you are a business owner who handles your payroll in-house, you know it requires a lot of time and focus. Each new hire equals more time spent, and each payroll period grows from cutting a few quick checks into a series of checks and balances to ensure no errors are made. The more time you spend on payroll, the more money you are spending on manpower and associated overhead. When you outsource your payroll, you immediately free up all that time. You can then redirect resources and focus on direct business operations and growth.
At the very minimum, handling payroll processing in-house requires the purchase of specialized software and extensive training to use it. In addition, business owners need to be sure that their staff stays up to date on changes in personnel, filing deadlines, and tax requirements on an ongoing basis. Without full-time, dedicated staff, many business owners find that it’s almost impossible to stay in the know on the latest changes in federal and state tax regulations, and what they thought would be a side task for a regular employee quickly turns into a full-time position for a highly trained specialist. When you consider the total time spent on payroll each pay period compared to the costs of outsourcing, you'll see a great deal of savings when you take those tasks off of your plate.
Helps You Avoid IRS Penalties and Fines
Payroll matters to your employees and making sure it’s done correctly should matter to you. Especially when you consider that in 2013 alone, the IRS issued $4.5 billion dollars in penalties to businesses who incorrectly calculated their payroll taxes. Even a single mistake can leave you open to audits and costly penalties, and because regulations change constantly, often many times throughout the year, it's unlikely that you can stay on top of all of these changes when your focus is to run and grow your business. However, a well-chosen payroll company, like Spectrum Payroll, gives you immediate access to professional team of experts who continually study and adapt to government regulations, and manage the details for you.
Bottom line, payroll is one of the most important things your company does – it supports your employees and keeps the business moving forward. The time you are able to save each day is money earned, and avoiding fees is always a good idea. Our team of experienced experts can provide you peace of mind with expert knowledge, as well as give you access to top-of-the-line technology, and ultimately, more time to grow your business.