Many business owners are not accounting experts or have training or experience in managing their own payroll. Payroll processing can be very challenging and confusing for many business owners, and the fact that the IRS can impose fines if it is not properly filed makes payroll processing intimidating. Due to this, most small business owners leave payroll processing to experts, either by outsourcing the payroll or processing it internally.
1) Outsourcing Your Payroll Is More Cost Effective
If the owner of a business uses a Certified Public Accountant to perform internal payroll service, the costs can be between $ 250 and $ 500 per payroll, not per month, but each time the payroll runs. Using a CPA is a great way to make your payroll successful for internal payroll processing because Certified Public Accountants are particularly trained in payroll and accounting events. But, Certified Public Accountants charge between $ 65 and $ 120 per hour and in about 4 hours per payroll run execution, the cost may be pretty substantial. If your company runs the biweekly or weekly payroll, it will double or quadruple this amount.
2) Outsourced Payroll Helps Small Business Owners Avoid IRS Fines
So, what happens if you cannot pay a CPA and decide to try to calculate, pay and file your own payroll for small businesses? Due to the complexity and changing payroll laws, it is easy to make mistakes. Approximately 40% of small business owners are penalized by the IRS for paying or filing their payroll taxes wrongly each year. It’s a high percentage, and about $ 850 per year in fines, doing your own payroll processing may not be as profitable as if you had a specialist who did it for you. Payroll outsourcing businesses like online business payroll automatically calculate, pay and file payroll taxes for your small business. Due to the automated process, you will never be late or you will lose a payment or a presentation. Read more.
3) Outsourced Payroll Is Easy and Simple
Payroll processing through an outsourced small business payroll service is very easy to use. Even though the configuration of your employees could take a few minutes, the real payroll run can be done in just a few minutes. Simply log in to the secure online portal of the third-party payroll service and enter the hours each employee worked during the payment period. When entering your employees’ hours, review the information and then click submit. Your payroll is done.
4) Outsourced Payroll Deals with W-2 and 1099 Forms for You
At the end of the year, small business owners should provide their employees a W-2 or a 1099 form by January 31 of the following year. W-2 forms are forms that allow employees to know how much money they earned, in addition to the amount of federal, state and local taxes that were withdrawn during the year. Form 1099 is for freelance contractors who paid more than $ 600 during the year.
5) Outsourcing of Payroll Services That Allow You to Maintain Control
Most payroll outsourcing let you maintain control over your payroll as dealing with harsh payroll tax calculations in the background. Payroll outsourcing is a valuable relationship because it lets you comply with tax laws, but it also lets you focus on your business rather than trying to become a professional in payroll processing.
Entering your online payroll information allows you to maintain control of payroll processing and helps eliminate double entries or typing mistakes frequently associated with calls or faxing your payroll information to a customer representative. You enter it, review it, approve it, you are always in control of the payroll service of your small business. Check this site: http://payrollserviceaustralia.com.au/payrolloutsourcing/