Payroll has come a long way since the 1960s. With the ever changing state and federal payroll tax laws, how can a small business keep up and not find themselves overwhelmed? Outsourcing your payroll to a professional employer organization may be the solution you have been looking for.
Discover why we think outsourcing payroll is good below!
1. Cost Effective
Many small businesses underestimate the cost and time associated with processing payroll internally. Outsourcing payroll to a processing company saves money because there is no learning curve or downtime. No need to hire and train a backup payroll processor.
To understand how much time is actually spent processing payroll, you must take into account the number of people involved in processing payroll, as well as the cost of that time. For example, simple tasks, such as changes to direct deposit account information, addresses, or W-4’s can be very time consuming for an in-house payroll team. However, it can be quickly accomplished by a payroll processing company.
In short, the main reason why outsourcing payroll is good is because a business can free up much of its employees’ time to focus their expertise on more productive and revenue-generating activities.
Another reason why outsourcing payroll is good is the fact businesses are able to pass along the responsibility of certain accountabilities to the payroll provider so they no longer have to worry about these tasks. This includes a continual payroll audit that catches possible mistakes before they happen, as well as having a dedicated processor willing to go above and beyond to correct any issues that do slip through the cracks. This is very important for companies whose current internal processors are also busy with other important tasks and cannot respond to payroll problems right away.
Payroll companies also offer services to file single, multi-state and federal payroll taxes. This relieves the pressure of knowing the latest tax codes, filing deadlines, federal and state deposit requirements, or government forms to file. The PEO takes over all these responsibilities for you so you don’t have to worry about it.
3. Covers Payroll Taxes
The IRS estimates that over 40 percent of small businesses will end up paying penalties due to a late or incorrect filing of payroll tax returns. To avoid paying penalties and interest, a company needs to be up-to-date on all state and federal payroll tax regulations. Using a payroll service can be useful when paying payroll taxes as the processing company must closely track regulations changes for their clients. When you hire a professional payroll company, they take on the responsibility of maintaining accurate records, filing the appropriate forms and remitting taxes due in a timely manner.
At INVOPEO, we offer a wide-range of outsourcing payroll services to meet all employers needs. From our online human resource information system you can access 24/7 to our dedicated staff of processors, we guarantee you will be hard-pressed to find a PEO who is better equipped to handle your company’s payroll needs.