Small landlords are increasing in number throughout the country. With the advent of vacation and short-term rentals as well as the financial benefits of owning just one, two, or three rental units as a side business, the appeal is easy to see.
But new landlords can get themselves into sticky tax trouble or end up with a tax bill if they fail to understand certain specific rules that apply to the landlord profession.
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.
Handling payroll is a part of running just about any type of business, and payroll is probably a big expense for your company. For your company's sake and for the sake of your employees, it's important to make sure that you're handling payroll properly. However, it's easy to make mistakes. Some of the common mistakes that many businesses make when handling payroll have been listed here.
1. Not Calculating Hours Appropriately
If your business is facing an audit, you may begin to worry that your operations will come to a halt altogether. After all, the IRS is a serious organization you don't want to mess with. So that you deal with this audit appropriately, consider working with an IRS representative. They can help you in the following ways.
Analyze Financial Documents
When responding to an audit, you have to get files and files of paperwork organized for those conducting the audit.
If you are working for a business that provides you with a pension, you want to make sure that you actively participate in taking care and keeping track of your pension plan. You don't want to be passive about your pension plan; after all, your pension plan is the ticket to a comfortable retirement and future. Here are some tips on how to best track retirement pension plans.
#1 Obtain a Copy of the Summary Plan Description