Managing the payroll of your small business can be a pretty big challenge. In-house payroll is tasked with such responsibilities as totaling employees’ hours, performing gross-to-net calculations for each of them, calculating and depositing payroll taxes, and then preparing and filing tax returns accurately and on time. It’s a complex, risky, expensive endeavor, since even just a small mistake can result in costly state and federal penalties.
Of course, you can always outsource to payroll services providers. These companies offer smart payroll solutions that simplify everything, providing small businesses with a single report to approve, and a single invoice to pay. As if that’s not reason enough to consider smart payroll solutions, here’s a few more reasons to consider outsourcing.
1. Save Time and Money.
Naturally, smart payroll solutions frees up your business’s staff to pursue more important tasks and revenue-generating projects. Plus, the direct costs of payroll and labor costs associated with payroll can be reduced when using smart payroll solutions.
2. Give Employees the Offer of Direct Deposit.
Direct deposit can be a difficult thing to provide for employees. Not offering it can make employees dissatisfied, but if your doing in-house payroll, it might not be a feasible project to pursue. That is, unless you’re utilizing smart payroll solutions. What’s more, direct deposit also eliminates time-consuming and error-prone paper handling, along with the need to reconcile individual payroll checks each and every month.
3. Avoid Headaches From Risky Situations.
A persistent problem for small business owners is whether their tax software is updated to the latest version and the most recent tax tables. If a small business has an employee for that instead, then outsourcing payroll can eliminate the risk of all the payroll knowledge and experience walking right out the door if a better job comes along for him or her.
Using smart payroll solutions instead of doing in-house payroll only makes good business sense. If you have any questions, feel free to ask in the comments.
