Why Businesses Outsource Payroll
1. Avoid IRS Penalties
According to the IRS, 40 percent
of small businesses pay an average
penalty of $845 per year for late or incorrect filings. Most
national payroll services provide a tax guarantee, ensuring
that there will be no penalties and taking responsibility for
penalties when they do occur. In many instances, this immediately
cost justifies outsourcing payroll.
2. Reduce Costs
The direct costs of processing
payroll can be greatly reduced
by working with a payroll provider. Our research indicates that
a small business of 10 employees will typically spend $2,600
per year in direct labor costs associated with payroll.
3. Alleviate Pain
Payroll is a headache in the
best case and a nightmare in
the worst case. Business owners that outsource payroll eliminate
a tiresome source of personal pain.
4. Offer Direct Deposit
Providing direct deposit is
difficult if a company doesn't
use an outside payroll service. Increasingly, small businesses
recognize that employees want direct deposit. Not having to make
a trip to the bank is an important convenience for them. More
importantly for business owners, direct deposit eliminates time-consuming
and error-prone paper handling and the need to reconcile individual
payroll checks every month.
5. Free Up Your Time
Payroll processing is a time-consuming
process. Outsourcing payroll
can free up staff time to pursue more important value-added and
6. Avoid Technology Headaches
A constant question for the
small business owner is whether
they have the latest version of their payroll software and the
most recent of the tax tables installed on their computer. Using
the wrong tax tables can result in stiff penalties. Outsourcing
payroll removes those headaches and keeps payroll running smoothly.
7. Leverage Outside Payroll
Most business owners and controllers
don't have time to keep up with
constantly changing regulations, withholding rates, and government
forms. By outsourcing payroll, a small business can take advantage
of expertise that was previously available only to big companies.
8. Avoid Payroll Knowledge Walking
Out the Door
If your bookkeeper or controller
gets a new job, they will walk
out the door with their knowledge of the payroll process and
how you do it. Using an outside service eliminates that business
Key Features of HR to Go’s Payroll
- Easy to set up
- Very easy to use!
- Ability to electronically
file state employment taxes
- We are here to help you with
our payroll representative right
- Availability of technical
- Ability to export payroll
data to various accounting software
packages and download into your general ledger
- Self Service access for your
employees. No more printing
old check stubs or W-2s for them!
- Competitive rates
- Reporting: Every business
has a different set of payroll
reporting needs. Perhaps you want to know labor expenses by department
or expenses for just one or a combination of your locations.
Typically, there is more flexibility in reporting when you are
using an in-house program with report editing capabilities. If
you are using a service, be certain your service provider can
give you the data you need, when you need it.
- Confidentiality within your
- Preparation of laser reports/laser
- 401(k) withholding capability
- Section 125 withholding capability
- Multiple state and multiple
local withholding capability
- Checks printed with 401(k)
year-to-date and W-4 status
- Preparation of tax coupons
- Payroll tax return preparation
- Distribution of general ledger
reports (generally done monthly,
but can be done quarterly, for each payroll period
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