You Ready for Tax Season?
Tax season is approaching. Are you ready? If you are one of the many businesses who outsource their payroll, you are likely breathing a little bit easier this time of year. By outsourcing your payroll, you are saving:
By leaving payroll management to the experts, you are freeing up man hours within your human resources department to focus on other matters. A payroll company will not only process your payroll, but cut and distribute checks, calculate withholding and employment taxes, and prepare and distribute W-2s and 1099s at the end of the year.
By outsourcing payroll, you will be spared the expense of hiring a payroll professional for your company. Additionally, your current staff will have more time to focus on other tasks because the payroll company will handle answering employee payroll questions.
It is estimated that one in three small businesses who do their own taxes receives penalty of $800 or more each year due to math errors. You will be worry-free when you allow a payroll provider to keep up to date with changes in tax code, calculate your payroll taxes, and provide you with monthly or quarterly employment tax reports.
In fact, outsourcing payroll duties has become so popular that the Internal Revenue Service has posted some tips on doing so to their website. They caution that even if your business is hiring a company to make tax payments on your behalf, it is ultimately your responsibility to make sure the deposits are made. Therefore, they encourage businesses to make sure their payroll service providers file taxes through the Electronic Federal Tax Payment System. This system gives employers access to the last 16 months of their payment history, which allows you to verify that payments are being made on your behalf.