Processing employee payroll can be an absolute nightmare, and one that many business owners dread. Between trying to determine how to calculate payroll deductions and how to figure payroll taxes, the entire process of how to pay employees can be confusing and frustrating.
The minutiea of payroll processing can be overwhelming for any business owner. Luckily, there are several complete payroll solutions to help business owners get the job done, taking the leg-work out of paying employees.
One of the common questions business owners ask themselves is whether or not they should process their own payroll, or take advantage of outsourced payroll processing services. While it’s possible for business owners to process employee payroll on their own, there are several benefits to outsourcing this task.
Business owners who choose to do their own payroll may be saving money in the short term, but risk losing a substantial amount of money in the long run. A simple mistake could cause a business to owe he IRS back payments and penalties. Failure to comply with filing, reporting, and other requirements can result in hefty fines, penalties, and interest owned to state taxing authorities and the IRS. The biggest — and easiest — mistake a business can make is failure to properly send payments to the IRS.
Outsourcing employee payroll takes the guesswork out of paying employees while adhering to state and IRS regulations. It allows you to have peace of mind knowing your payroll will be done properly, which in turn allows you to focus on the day to day business operations of your company. For this reason alone, many businesses prefer to outsource their payroll.
However, it is possible for businesses to process their own payroll in-house. Having a background in accounting is helpful, however, not a requirement. However, it is important to research all laws and regulations, in addition to deadlines. It helps if company also has a small number of staff. There are a number of payroll solutions that meet the needs of small businesses, and take the guess-work out of processing payroll in-house. Employee payroll software can help in navigating the nuisances of processing payroll, expediting the entire process.
While the decision to manage your own payroll or outsource it isn’t an easy one, there are several resources available to help you get the job done.