If you have no talent for accounting or have not experienced preparing payrolls before, then it would really be a challenge to prepare the payroll for your small business employees. A small business owner can be challenged and confused in preparing payroll for his employees. Another caused of business owners’ intimidation when it comes to preparing payroll is that when it comes to filing tax returns, any mistakes or errors on payroll entries will be penalized by the IRS. Many business owners are willing to pay experts just so to make it right when processing payroll. If you want to let the experts do it for you, you can outsource your payroll processing or have an in-house payroll unit to do the payroll for your small business.
Payroll outsourcing is perhaps your best option as small business owners for the reasons given below.
If a CPA does your payroll processing, you can have your payroll done correctly since they are specially trained in accounting and payroll procedures. However, it can be very expensive to keep a in-house payroll processing department by hiring a CPA since they charge hundreds of dollars for every payroll run. The amount you will pay your in-house accountant will double or increase four time, depending on how often your payroll is processed. Your business profits will get small with this expense.
The benefit of outsourcing your payroll processes is the accuracy of your payroll since it is also processed by CPAs. And not only that, the cost of outsourcing your payroll is only a fraction of what you pay for your in-house accountant. With its accuracy and cost-effectiveness, outsourcing your payroll is the best option to take. If you do this, you will have a lot of savings.
There are a lot of business owners penalized each year by the IRS for paying or filing their payroll taxes incorrectly. With penalties to pay for erroneous payroll tax returns, trying to save money doing the payroll tax preparation by yourself will defeat your purpose. Payroll outsourcing companies automatically calculates, pays, and files your small business payroll taxes for you. You will always be on time to pay your payroll and to file your payroll tax returns since payroll outsourcing services are automated services and so they can give you fast results.
It is easy to use payroll processing through an outsourced small business payroll services. Once you are in the online portal of your payroll services company, you simply need to enter the hours that each employee worked during the pay period, submit, and your payroll is done.
You need to give your employees either a W-2 form or a 1099 form at the end of the year. With outsourced payroll companies, this information is kept track for you and they will file it for you. Outsourced small business payroll services will allow you to be able to print W-2 and 1099 forms for your employees on the spot.