For smaller companies, it is often makes more sense to outsource some of their business needs rather than taking care of solely in-house. Payroll services are one of those needs. Here is a look at three benefits of using an accounting firm for your payroll services needs.
Using A Payroll Service Can Be More Cost-Effective
Every employee a company hires costs money. In addition to paying their wages, state and federal employment laws also dictate which benefits you also need to provide and at which level. For example, a company with 50 employees may still be thought of as relatively small, but the federal government would disagree. The Affordable Care Act requires employers with 50 or more full-time employees to provide health insurance, and if they don't, they can be penalized by the IRS. Depending on how many employees you currently have, it may make more financial sense to outsource your payroll services needs.
Using A Payroll Service Can Save You Time
It's not uncommon for the business owner to handle payroll, especially when the company is still small and doesn't employ many people. However, even when the company is small, doing the payroll is time-consuming. If you're like most business owners, you are probably already spread too thin from wearing so many different hats in your company. Your time is valuable, and time is money. Using a payroll service rather than doing it all yourself can free up your time for more important things like making money.
Using A Payroll Service Can Prevent Costly Mistakes
Unless you have an accounting degree, it's really not wise to do your own payroll. It's too easy to make simple mathematical errors or enter the wrong information into an accounting software program. If even one number is off, the whole thing is wrong. Not only do you need to get your employees' wages correct, but you need to make sure you take out the right amount of withholdings for local, state, and federal taxes as well as paying into Social Security and any garnishments the employees may have.
Do you really feel confident you won't make a mistake? If you do make an error, you'll end up with even bigger headaches, potentially including legal troubles. A professional payroll service will not only take on this risk for you, but they will also make sure that you are always compliant with the rapidly changing tax laws.