•

The Importance of Payroll to Small Business in 2020

June 2, 2020 Kevin Kenealy payroll processing Comments Off on The Importance of Payroll to Small Business in 2020
The Importance of Payroll to Businesses in 2020

Small business owners where multiple hats while running their company and 2020 is no different. Those hats include payroll, human resources, management, and sales just to name a few. Completing payroll is easily one of the most critical duties a small owner must do to run a successful business. Employees must be able to count on getting their wages on pay day with zero interruptions. Payroll impacts all components of a small business from the confidence about the company employees to the solvency of the company.

Employee Confidence

Employee confidence is tied directly to timely payroll. Large businesses are not as transparent about their financial stability as small businesses. Employees in small businesses are closer to most working aspects of the business they work for including sales, billing, collections, human resources, and payroll. In a small business if payroll is not paid on time or if payroll checks start bouncing at the bank, employees will naturally become concerned about the financial stability of the company. Employees will begin to back away from performing their job duties on time or effectively if they see they are not getting paid for work performed. For employee confidence in a business to stay positive, payroll must be paid on time.

Employee Compensation

A critical component of payroll is that gives each employee direct satisfaction about their value to a small business. Payroll demonstrates and documents each employee’s complete compensation. Employee compensation in payroll includes company paid benefits, commissions, insurances, and salary. At most companies, each employee monthly, quarterly, semi-annually, or annually, complete a performance review with the owner, their manage or their department supervisor. If an employee is doing well and meeting or exceeding their agreed job goals, they may be given an increase in salary or an annual bonus, and some instances, both are rewarded. Employee benefits also demonstrate employee’s value to the business. Small businesses that pay employee benefits like health insurance, life insurance and stocks, show to employees directly how much they mean to the company.

Payroll is a Time-Consuming Task

Small business owners spend a considerable amount of time doing payroll. Payroll has to be completed on time weekly, every two weeks or two times a month. Payroll must be 100% accurate. By law, employees are required to be paid the exact amount due to them for the time they provide their labor. Tax withholdings, insurances, and other payroll deductions all must be the correct amount and must be paid on time. To make sure payroll is paid on time and done 100% accurately and to free up a considerable amount of time, small business owners should consider outsourcing payroll.

 

Timely State and Federal Tax Payments

Payroll must be done correctly for business to keep in compliance with state and federal tax obligations. Penalties for not paying payroll taxes on time are significant. Employees must complete their W-4 withhold forms and it is the responsibility of small business owner to make certain of it. Employee personal taxes withholding is determined by how W-4 withholding forms are completed. Additionally, small business owner must be sure they are withholding and sending the correct amount of FICA taxes monthly and annually from payroll. Legislation can and does get enacted annually that impacts FICA amounts for withholding. It is the employers; responsibility to make sure they are complying when it comes to withholding payroll taxes. Again, this is a perfect example of why it makes sense to outsource payroll processing. Hiring a payroll processing company, like the Payroll Company, is the perfect solution to handle your small business’ payroll in 2020,


Payroll Processing Money Saving Tips for 2020 – Part One

April 2, 2020 Kevin Kenealy payroll processing, payroll processing tips Comments Off on Payroll Processing Money Saving Tips for 2020 – Part One
Payroll Processing Money Saving Tips for 2020 – Part One

Business owners find that payroll is typically one of the biggest expenses that is encountered with running a business. Employment taxes along with wages is going to make up the vast majority of your payroll costs, but there are other things that need to be taken into consideration, like the expense of simply processing your payroll that will ultimately affect your business’ bottom line. Regardless of your company’s size, saving money is always a good priority, and here we have listed a handful of ideas on ways that you can reduce your payroll service costs.

Taking an inventory of what your company’s exact wants and needs are will greatly benefit you in the long run. Whether you handle the administrative side to payroll yourself, employ a staff member to help you, or outsource for these needs, the best way to take control of your payroll processing and save money is to have a clear idea of what exactly it is that you need done. Knowing what you are currently lacking will help you define what actions need to be taken without wasting precious time or resources to help you figure it out.

Making sure that you have accurate information on file for each individual employee is another crucial step to cutting payroll costs. Items such as the date of birth, address, social security number, and other personal identification information is extremely important to keep in your employees’ personal files. Making sure that all of these details are correct will save a lot of work and time. This is the primary step to make sure your payroll costs are not inflated. Without the need to correct information that should already be on file, you will cut the time that is required to accomplish basic tasks significantly.

Become a Payroll Tax Compliance Expert

When you look at handling the process of making payroll, there are several adjustments that you may be required to make. Tax payments, bonuses, commissions, wage adjustments and wages in general are going to need to be taken into consideration. There are several deductions that should also be accounted for.

Adjustments and deductions that will need to be made are probably going to vary with each individual employee. Making mistakes due to poorly kept files can become a big expense. When your staff expands, or your business grows beyond state borders (either the states your employees reside in or where your business is being conducted),  the process of handling taxes can become much more complicated. It has been stated that 40% of small businesses are being penalized for addressing payroll taxes either late, or incorrectly. Knowing the requirements of both the state and federal legal requirements when it comes to your payroll will help you save money in more ways than one, including avoiding penalties. Not knowing what the laws and requirements are do not make you exempt from potential penalties when it comes to your state tax agencies or the IRS.


How to Improve Your Company’s Payroll Efficiency in 2020

January 4, 2020 Kevin Kenealy payroll processing, payroll processing systems Comments Off on How to Improve Your Company’s Payroll Efficiency in 2020 ,
How to Improve Your Company's Payroll Efficiency in 2020 - By the Payroll Company 505-944-0105
How to Improve Your Company’s Payroll Efficiency in 2020
– By the Payroll Company 505-944-0105

Working with an online payroll processing system to run your company’s payroll is not too difficult, if you select the correct payroll system provider for your company that makes the most sense. The system must have the functional features, data and reporting capabilities your company needs to run its payroll effectively. Certain online payroll providers like, the Payroll Company, for example, offer dedicated employee online portals which provide limited feature access that allows staff to update basic employee details, such as number of exemptions and employee benefit payroll deductions, for example.

Online Payroll Calendar Importance

Simplifying and improving payroll data entry is just the start. If the data needed to complete payroll does not arrive in a timely fashion, it can turn any payroll period into a disaster, no matter how amazing the new payroll processing system is subscribed to by a company. Company’s must have a payroll calendar so everyone in the company knows when payroll is due and when it will be paid.

Developing a payroll calendar is simple process that is not too time consuming. In some instances, if the new online payroll processing system a company signs up for doesn’t include a payroll calendar development tool, an excel spreadsheet will work. Most payroll software provider companies, like Albuquerque, NM, based payroll processing company, the Payroll Company, have a payroll calendar tool built into its payroll processing software.

Payroll Integration with Important Company Systems

Payroll is interdependent in most companies with several standard company business systems and department. Those systems and departments including tax, bookkeeping, accounting, timekeeping, benefits management and human resources. When a company processes payroll manually it is like juggling multiple balls in the air, which is close to impossible. To make this happen effectively and do it correctly mean all the information for each department and business system would need to be very organized and easy to access.

Signing in on for an effective payroll software program will bring all these tasks and integration into one system that ties it all together.

The top online payroll processing software packages include dynamic user-friendly integration components ready to use immediately. The minimal system that makes the most sense to sign up with must be able to connect with your company’s accounting and bookkeeping software and keep track of attendance. The system should viewable in one place from both desktop and mobile. If it has these features, it means users can handle payroll from anywhere and be able to view reports as well anytime of the day or night.

For company’s that want to implement high-level integration there are payroll software programs that feature application programming interface capabilities. This type of system allows subscribers to develop specific integration that meets the exact needs of the company, instead of just the canned features the systems includes out of the box.

Scheduled and Random Audits of Company’s Payroll System

Reviewing company payroll on a regular basis is a plain prudent strategy every business should follow. Auditing payroll should be part of a company’s ongoing monthly task list and it should also be done randomly as well. Since the beginning of time in business payroll has been a place where fraud has been perpetrated by unscrupulous people. It is much better to trust your staff, but then verify to confirm the monies being issued by payroll employee rolls match up with the company’s accounting, bookkeeping, and human resources records.

When doing a payroll audit, review the company’s payroll rules and polices. Be sure to be seek out any policies that cause misunderstanding and then change them where it makes sense to make the rules as user-friendly and easy to comply with as possible. Discuss your payroll audit with the company and ask for direct discussion and comments about issues, problems or concerns. Two sets of eyes or more are always better than one. The company staff can help identify payroll problems and bring them to the company’s attention. Do this on a regular basis to be certain all issues and problems are dealt with well and immediately.

Moving forward, complete an analysis of each phase in the company’s payroll process to check that it’s operation effectively. Consider each phase of the payroll process and then decide if each phase is needed or not.

Lastly, be certain your company’s payroll software is operating correctly. Test all integrations connected to it to see if there are any problems or real-life business mistakes that need to be corrected immediately. When it comes to critical areas like timekeeping, payroll tax compliance these areas have long lasting implications both financially and legally. Testing the company’s payroll software to check and see if it is set up and operating correctly is just smart business that will help your business stay in line in all areas connected to it and the company.

If you need assistance picking the best payroll service to meet your company’s needs, it makes sense to explore several new ones and then make the switch to one that will help your company in the best way possible.


The Biggest Employment Issues for Employers During 2019 – Part Two

July 3, 2019 Kevin Kenealy employee benefits, payroll processing Comments Off on The Biggest Employment Issues for Employers During 2019 – Part Two ,
Online Benefits Administration and payroll processing

Employers deal with lots of issues regarding taxes, employee benefits, payroll processing and human resources each year and 2019 is no different. Featured below is part two of a list of the biggest issue’s businesses must stay aware of this year. The biggest issues are as follows:

  1. Cyber Attacks Security and Privacy – Today there’s constant news of ransomware, cyber-attacks and real-world invasion of workplace computers. It is critical employers take these real-world risks seriously because they are happening and impacting companies and governments directly. Company’s must take action directly to stave off risk by doing the following things: never use Social Security numbers as employee id’s; use secure email when sending sensitive information of any type; employ direct methods of destroying sensitive information by using secure shredding services; and finally, when departing from a workplace workstation completely logout of all devices.
  2. W-4 Changes – Because of the tax reform law of 2017, many updates to Form W-4 have been mandated by the federal government. However, because the updates are complex, complying with the mandated updates is not required in 2019 so the W-4 is almost the same as the 2018 W-4.
  3. Healthcare Reform for States – Federal regulations and guidelines have been changed that will impact the markets for health insurance with respect to Health Reimbursement Arrangements (HRAs), Short-term Limited Duration Insurance (STLDI), Association Health Plan (AHPs), which may end up impacting how employers provide health insurance.
  4. Employer Shared Responsibility (ESR) IRS Mandated Enforcement – Large employers need to comply with Employer Shared Responsibility. When an employer receives a 226J letter, the onus is on them to respond to the letter an provide the requested information with respect to all company departments including benefits, human resources and payroll.
  5. Department of Labor Rule Making Effect – During the U.S. Department of Labor fall 2018 regulatory agenda it was communicated that the its Wage and Hour Department was going to issue several Notices of Proposed Rule Making regarding many regulations which would impact virtually all employers. The biggest change being made was to overtime regulations, but there were many other changes to regulation effecting the rate of pay. These changes would not go into effect most likely until March 2019.

The Final Word on Employer Legal Issue Awareness

Companies need to be sure they are in compliance with respect to all employer laws and regulation mandated by both State and Federal government entities. It is in a company’s best interest to be aware of the biggest issues of the day and make sure it is compliance with all rules and regulations.


The Biggest Employment Issues for Employers During 2019 – Part One

July 2, 2019 Kevin Kenealy employer laws, payroll processing Comments Off on The Biggest Employment Issues for Employers During 2019 – Part One
Online Benefits Administration

Employers deal with lots of issues regarding payroll, payroll taxes, employee benefits, payroll processing and human resources each year and 2019 is no different. Here is a list of the biggest issue’s businesses must stay aware of this year.

  1. Sexual Harassment Deterrence Training Issues – Companies now must be more aware than ever about sexual harassment problems. When the #Me Too movement evolved it created a firestorm in the workplace across the country when it comes to awareness of sexual harassment and its need of deterrence. Starting in 2018 and continuing in 2019 the amount of sexual harassment lawsuits grew significantly around the country. Many states passed new legislation, laws and regulations with built in required workplace training to prevent sexual harassment.
  2. Paid Time Off Issues – Nationwide 40 plus states and city governments have rolled out mandated paid leave laws with additional ones set to launch paid time off laws onto the books during 2019. Paid sick time off laws are more commonplace, it’s true that paid family leave laws cause more hardship and are more difficult for companies. Family leave paid time off laws are paid for by either company or by its employees and they may require mandatory reporting by company’s with respect to employee pay, worked hours and amounts of deductions from paychecks.
  3. Federal Government Reduction of Mandated Retirement Plans – President Trump made an executive order instructing both the Department of Treasure and the Department of roll out suggested legislations with built in regulations to reduce the financial load small businesses deal with while providing savings plans for employee retirement.
  4. Gig Work and Rapid Payment – People working in the Gig economy getting paid rapidly is a big part of the employment scene in 2019. Keeping payments to gig economy workers secure and making sure they get paid rapidly is very important to businesses in today’s employer world.

The Final Word on
Employer Legal Issue Awareness

Companies need to stay in compliance with respect to all payroll processing, insurance compliance and employer laws and regulation mandated by both State and Federal government entities. It is in a company’s best interest to be aware of the biggest issues of the day and make sure it is compliance with all rules and regulations.


Payroll Processing Outsourcing Plus & Minuses – Part Two

June 15, 2019 Kevin Kenealy payroll processing, payroll processing company, payroll processing systems, payroll services Comments Off on Payroll Processing Outsourcing Plus & Minuses – Part Two ,

Take a minute to review the pluses and minuses
of switching your business to an outside payroll processing services provider.
Featured below are both the pluses and the minuses.

The
Pluses

  • Time savings – Several surveys over the years completed by a variety of business associations have reported that business owners place payroll and payroll taxes as the number 2 task that takes up the most time and creates the most hassle of all the tasks categories it takes to run a successful business. It’s obvious that running payroll 1 to 4 times a month requires a ton of time and focus to complete. Switching to an outside payroll processing service provider frees up time and improves effectiveness for most business owners.
  • Reduction in Expenses – Each pay period requires completion of a long list of required tasks including preparing and paying mandatory payroll taxes, running payroll reports, figuring out wages for the entire company staff, printing, signing and handing out payroll checks.
  • Better Company and Employee Data Security – In 2019 payroll processing service providers provide, mirrored backup systems, several server farms, the most up-to-date technology, solid secure SSL (secure socket layer) firewall protected systems to safeguard private employee and company information and data.
  • Keeping Current with Regulations – It is hard to stay compliant and current with payroll tax laws and payroll taxes. The financial penalties are huge. Payroll processing service providers know all the rules and regulations like the back of their hand. Their primary objective in running their business is implement this knowledge, process your payroll for your company and keep you current with all requirements and regulations.

The
Minuses

  • Ease of Use Getting Wage Reporting and Employee
    –     Certain payroll processing service providers do not offer reporting
    on payroll costs and other critical data about employees due to the fact they
    do not have the information or because the data is on their servers, which your
    business does get access to for various reasons.
  • Time Issues on Fixing Payroll Mistakes –
    Payroll companies are sometimes slow to respond to payroll errors. If the
    company or the employee needs aren’t met when it comes to payroll errors, it is
    bad for everyone.
  • Payroll Services Pricing –
    In some instances payroll processing service providers do not customize pricing
    to fit a company’s needs. Check to make sure the services provided fit your company’s
    needs and not the other way around.
  • Chance Your Payroll Processing Provider Closes
    Its Doors     – Businesses close all the time. It can be due failure,
    loss of a primary partner or any number of reasons.  If this were to happen to your business, you
    may lose out on access to company payroll data, employee data and potentially
    your company’s money.  

The
minuses described here do not have to be part of your picture. The main thing
to make sure you do is your due diligence in checking out the company thoroughly
first. Use the following guidelines to make a smart payroll processing service
provider choice:

  • Recommendations from associates, mentors and business owners
  • Documented credentials including time in business, similar company
    payroll processing experience and confirmed business licenses.
  • Confirmed quality customer service and personal attention to
    detail
  • Services and support offered meet your company’s needs
  • Pricing and additional fees or charges are documented upfront
  • Reporting of data, data reporting needs and security of data are
    rock solid

Payroll Processing Outsourcing Plus & Minuses – Part One

June 13, 2019 Kevin Kenealy payroll processing, payroll processing company, payroll processing systems, payroll services Comments Off on Payroll Processing Outsourcing Plus & Minuses – Part One ,

In today’s modern web-based technology world,
companies can choose from multiple options to complete payroll. Business owners
that opt to do it themselves is one way and businesses that choose to assign
the task of doing payroll to a department, like human resources, is another way
to go. Lots of businesses choose to go to a provider outside the company for
payroll processing like a bookkeeper, accounting firm or an online payroll
processing company. The rub lies in figuring out which method is the best way
for your company to do its payroll.

Small-business owners need to take a hard look
at where their time is best spent. Look at how much time is being spent now by
you each month doing the company payroll. If the answer is too much where for a
small monthly fee payroll is completed and the time is gain is used closing new
sales. Review your payroll to make sure you are current with all state and
federal laws, rules and payroll regulations. If you’re not sure or you’re not
current, it might be time to switch to hiring a payroll processing provider.
Look to see if you’re keeping all your company’s and your employee’s financial
data well secured and private. Also, check to make sure your company’s records
for wages, benefits and retirement programs are on time, current and correct.

Payroll Processing Success, But Is It Taking
You Away from Important Tasks

You are managing running your company’s payroll successfully. However, if keeping up with running payroll, maintaining legal requirements, data security and records is eating up a good amount of your time, you may want to switch to outsourcing payroll to an online payroll processing company. Payroll processing company will calculate your company’s payroll and its associated taxes, print and handout checks, complete direct deposit payroll checks and complete all the company’s payroll reports. It will file payroll taxes, issue annual Forms W-2, set up worker’s 401(k) deductions and connect their contributions to investment account providers and keep records on benefits of employees.


Payroll Processing Systems in 2019

June 5, 2019 Kevin Kenealy payroll processing, payroll processing systems Comments Off on Payroll Processing Systems in 2019
The payroll company payroll processing albuquerque nm

Payroll is the biggest financial duty each business must comply with other than paying its legally owed income, payroll and sales taxes. Payroll mandates accurate payment to employees and full compliance with all federal, state and local government laws, rules and regulations. Severe financial fines by government agencies like the IRS and State and employee anger will be part of a business’ picture if payroll processing is not done accurately and on time. Make a choice to use online payroll processing or to use in-house payroll processing hinges on having a full understanding of the needs your business for both payroll itself, financial accounting, cash flow and budget forecasting.

In-House Payroll Processing

In-house payroll
processing is a solid selection to consider if your company features ten or less
employees with little to no changes in hours, benefits and deductions from week
to week and month to month. If your company’s payroll processing requirements
are simple and payroll fields for deductions are easy to update and answers to
questions from employees are easy to provide, keeping payroll processing in
house using a payroll software program. The bottom line for in-house payroll
processing is the company’s employee charged with the task of doing payroll and
managing it on-going basis absolutely has to stay current with company staff
turn-over, payroll tax laws and stay current with tax filings, tax withhold for
the company and its employees and pay payroll accurately. In-house payroll processing
might reduce security and risk factors for the company and its employees’
financial data.

Bookkeepers and CPAs Payroll Processing

Businesses across
the USA outsource payroll processing to bookkeepers and CPAs all the time, but
most of time each one prepares it similarly to doing it in-house and bank
interface services including 401(k) deductions and direct deposit for employees
may not be offered or available. Be certain to check to see if the bookkeeper
or CPA provides the knowledge and skill sets your company requires such as payroll
changes like increased wage per hours or new deductions to keep any payroll processing
mistakes from being made.  Federal tax liability
payroll deposits and payments to the IRS are a 100% a business’ responsibility.
If an error is made the IRS will call you the business owner and not the
payroll processing company. Be sure the company you hire can and will take care
of all tasks on time and without fail.

Payroll Processing Service

Payroll processing service provides are professionals with
high-level payroll tax and regulatory mandate expertise. They are professions
with excellent skill sets that will make sure your business is 100 % current with
all regulatory reports and tax deposits, leaving your time completely unencumbered
from dealing with payroll task responsibilities. Payroll processing services
include disbursing payroll wages to company employees via paper check, payroll
debit cards and direct deposit as well as automated deductions from paychecks
for benefits retirement savings such as 401(k) and 403(b). Payroll services
quite often provide services guarantees and the chances of mistakes and ensuing
penalties for incorrect or tardy payroll tax filing are very low. The federal
government’s Electronic Federal Tax Payment system provided by the U.S.
Department of the Treasury is a no cost secure service gives employers the
ability to login online to the Treasury website and confirm their tax payments
have been made through the system.

Online Payroll Processing

Managing and overseeing payroll 365 days a year, 24 hours a day, is offered by online payroll companies through a web based online payroll processing platform complete with an SSL certificate and firewall to protect sensitive company and employee data.  Once enrolled with an online payroll processing provider you will not have to buy payroll software or expensive equipment. On-boarding new employees for payroll, entering current payroll and tracking employee paid vacation and sick leave pay can all be done from a desktop, laptop computer or a smartphone. Most online payroll companies provide payroll services, payroll tax filing and payment. Signing up for online payroll services with tax filing and payment included gives company owners peace of mind and it frees up time to manage and grow their company.

Consider all the options for payroll processing while looking at the needs and legal requirements of your company and then make a smart well-informed decision. For further information about payroll processing look at this article: “Why Payroll Processing Is Highly Important to Every Albuquerque Business Part One“.


Benefits of Payroll Debit Cards for Employees and Employers in 2019 – Part Two

May 17, 2019 Kevin Kenealy payroll debit cards, payroll processing, payroll processing company Comments Off on Benefits of Payroll Debit Cards for Employees and Employers in 2019 – Part Two ,
payroll-debit-card-for-wages-the-payroll-company-albuquerque-nm-505-944-0105

Companies need to check to see if there are extra fees assessed to employees when issuing payroll themselves via debit card and when choosing a payroll processing company offering pay debit card program. Companies need to offer several ways for company employees to receive their pay. A company is not allowed by law to require employees to receive pay solely by payroll debit card. Employees must be provided several options as to how they receive their wages, not just via debit check card. It has been reported over recent years that some employers didn’t do this for their employees, which is against the law. In response the Consumer Financial Protection Bureau issued a bulletin covering legal regulations covering payroll cards. The main points on the bulletin were as follows:

  • Fee Documentation – Documentation must be provided of fees
    charged by the issuing bank to the employee related the EFTs (electronic fund
    transfers) and written explanation about liability limits.
  • Account Records Access – Regular statements must be given to
    card holders by payroll debit card issuers electronically online or telephonically
    providing account transaction history and fees charged.
  • Unauthorized Transfer Liability Limits – Employee’s limit of
    liability for use not granted if reported within a specific written time period.
  • Rights to Resolution for Errors – Payroll debit card financial
    institution mandated response to card holder within 6 months of occurrence of mistake
    or error.

Several different organizations over recent years have provided
statements about the pluses of wages being disbursed to employees via payroll
debit cards and regarding the top ways for employers to make the most of the
program for their employees. The top recommendations included issuing pay without
fees being charged (employer pays the fees) and to provide the wages using the
top credit card brands such as VISA, MASTERCARD and DISCOVER. Employers must also
give complete documentation of fees employees may incur.

Payroll debit cards are a big part of
providing payroll to employees today that do not have a bank account. Operated
correctly, payroll debit cards provide wages at a low cost with speed, easy and
convenience to employees. The program helps both the employer and employee work
together efficiently. Look today with your local payroll company to see if your
company can save money and improve its payroll process each month by starting a
payroll debit card program as part of its payroll disbursement options.


Why Outsourcing Payroll Processing is a Smart Move for Your Business

April 6, 2019 Kevin Kenealy payroll processing Comments Off on Why Outsourcing Payroll Processing is a Smart Move for Your Business , ,

Businesses are required to complete and meet obligations to employees. Payroll problems are difficult for today’s high-tech business world. A business’s payroll division oversees multiple components of employee compensation. It manages payroll processing, direct deposits to employee’s bank account, FICA, FICO, State Income tax payments to government entities including the State and the Federal Government, reporting requirements, time and attendance tracking, company payroll management reports, worker’s compensation, 401k’s plus other types of retirement account reporting, unemployment claims, vacation time-off and more. This is a giant set of tasks to manage for a small business while running the business itself. Putting time into these tasks means a business owner is not focusing on building and managing current business.

What is the Appropriate Amount of Time to Spend on Payroll?

The practical way to answer this inquiry is a business owner needs to calculate the amount of time spent working on payroll each week, every two weeks or month and multiply it out for 52 weeks, 26 weeks or 12 months. After the totals for each segment of time are calculated, a business owner needs to look at the true cost of working on payroll by comparing it to the amount of business not generated related to working on payroll instead of managing and building the business. To make the comparison and analysis useful and valid each payroll task needs to be included in the assessment including managing tax reporting, employee benefits, retirement funds to new name just a few. Several studies over the years indicated in real numbers that business owners spend 3 full weeks a year dealing with federal tax problems. Add all the hours spent dealing with all the other payroll problems and tasks and it becomes readily obvious managing payroll is costly from both a time and business growth perspective. There’s not a fixed number or an empirical study out there that provides when a business owner should hire a payroll processing company, instead of doing it themselves. However, it’s easy to assess if an owner is spending 10 – 20 % of their time working on payroll and all its accompanying issues it’s likely a smart move to hire a company to process payroll to save time and money and then put those savings into managing and building business.

Look at the questions below to determine if it’s time to hire an outside payroll processing company:

  • Is the time spent on payroll exceeding your comfort level?
  • Is your business growing, adding more employees and now is
    payroll becoming a much bigger task than before?
  • Are payroll mishaps become more costly due to tax penalties assessed
    for filing errors charged by the IRS?
  • Is payroll taking up so much time that the critical time needed
    to manage and grow your business is compromised.

From a logical assessment perspective, if the responses to this set of questions happen to be yes, it’s makes good sense to outsource payroll processing. The monthly cost of payroll processing fees, while not nominal, is affordable for most businesses. The benefits of outsourcing payroll processing are time-savings, cost savings generated from reduction in penalties and fines and the improved ability to focus time on and energy towards building and growing your business.


« Previous   1 2 3   Next »
TAP TO CALL