With the calendar year ending, tax season is right around the corner. Federal, state, and local taxes need to be filed on time and paid in full. Even for the most detailed individual, filing company taxes can be a source of anxiety, because the smallest mistake or omission can result in costly fines. According to the Internal Revenue Service, one out of every three existing employers has been charged for a payroll mistake. If you want to put the stress of tax filing behind you, it is time to investigate outsourcing your payroll services in 2014.
Outsourcing makes sense for your business, particularly if your payroll fluctuates each pay period due to turnover or part-time staff working varying hours. Basic payroll services usually involve calculating payroll and tax obligations for your employees, printing and delivering checks on a weekly, bi-weekly, semi-monthly, monthly, or yearly basis, and providing you monthly data reports. The company you outsource to can also free up time for you and your employees by providing automatic check signatures, stuffing envelopes, handling direct deposit of checks, and issuing W-2 forms. They may also provide tracking of benefits information, as well as tie-ins with 401(k) and Section 125 mutual funds which allow employees to designate automatic deductions from their paychecks.
Perhaps the greatest benefit of all is that many payroll companies will offer you the service of filing the state and federal payroll taxes for your business. They typically offer this to you at little or no cost, because they are earning interest on your impounded taxes all year long. The payroll company will also generally take responsibility for any penalties incurred as a result of inaccurate filing. As a result of outsourcing your payroll, you will save time and money, two items critical to the success of your business.