The regulatory environment for small businesses has grown increasingly complex. When it comes to the seemingly simple act of paying employees, there are lots of things you need to consider depending on where your business is located – payroll taxes, deductions, SUI rates, time-off requirements.
Those are just a few of the things you have to concern yourself with, and some states are far more complicated than others. An error could mean a costly penalty.
So you have two reasons to want to alleviate that burden –
- It’s a lot of time and effort to put into something that doesn’t help grow your business and
- You want to avoid any monetary fines that could detract from your ability to make a living.
A payroll service can help you focus on the business of selling your products or providing your service rather than these tedious, functional tasks.
Why You Should Consider a Payroll Service
If you already have a few full-time employees, you’re aware of the extra work this can sometimes require.
You’re having to deal with calculating, deducting and paying federal, state and local taxes, including Medicare and Social Security. You also have to know how to handle potential deductions for 401(k), workers’ compensation and other benefits.
The tax laws, meanwhile, change on a regular basis from year to year, and sometimes more often than that.
That’s why you’ll want to look for a payroll service with a lot of experience in the industry that make this process seamless.
Independent contractors may, in some ways, seem less complicated than a salaried employee, but they’re not without their set of requirements for the business owner.
You’ll need to provide them with a 1099, as well as certain expected options like direct deposit.
What to Expect from a Payroll Service
A good payroll service should provide certain essential functions to your business:
- Automatic filling of payroll taxes, including Social Security and Medicare.
- Preparation of tax forms such as W-2s and 1099s.
- The ability to pay multiple employee types at the same time.
- Customer service support with in-depth knowledge of tax regulations.
- The ability to use direct deposit or issue paper checks.
- Integration with CPAs, if your accountant handles this end of your business.
Beyond the features of the service, though, what you’re really paying for is your time back, so you can focus on your business. And the cost should be marginal in the course of a year. Just like you use technology to save time and increase productivity in a bunch of different areas of your life, you can use an automated payroll solution to cut down on tedious administrative work.
Making sure payroll runs smoothly, and that you and your employees don’t have to worry about it, is a core part of being a good employer. Don’t make it any harder on yourself than is absolutely necessary.