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. Another caused of business owners’ intimidation when it comes to preparing payroll is that when it comes to filing tax returns, any mistakes or errors on payroll entries will be penalized by the IRS. This is the reason why most business owners leave payroll processing to the experts. There are two ways to have accurate entries in your payroll tax returns, and they are to either outsource your payroll processing or do it by traditional means or through an in-house payroll division.
Here are some good reasons why it is best to outsource your payroll processing.
With their training is accounting and payroll procedure, CPAs who will do your payroll processing will make sure that it is done correctly. But, if you will put a in-house accountant to do your payroll, it will really cost your much because they charge hundreds of dollars for every payroll run. And if you have a weekly or bi-weekly payroll, the amount will surely increase. This expense can surely eat up your business profits.
The benefit of outsourcing your payroll processes is the accuracy of your payroll since it is also processed by CPAs. The amount you pay for payroll outsourcing services is only a small fraction of the amount you pay an in-house accountant. So outsourcing gives you an accurate and cost effective payroll processing. If you do this, you will have a lot of savings.
The IRS penalized business that have erroneous entries in their payroll tax returns. You might save a lot in doing your own payroll tax returns, but if you make a lot of errors, these savings will amount to nothing. If you outsource to payroll services , they can automatically calculate, pay, and file your small business payroll taxes for you. You will always be on time to pay your payroll and to file your payroll tax returns since payroll outsourcing services are automated services and so they can give you fast results.
Payroll processing is easy with outsourced small business payroll services. The simple process includes logging on to the online portal of your outsourcing company, enter the payroll details, submit it and everything 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. With outsourced payroll companies, this information is kept track for you and they will file it for you. W-2 and 1099 forms can be printed for your employees on the spot prepared by outsourced small business payroll services.