One of the trickiest things for any small business that employs people is payroll. The good news is that you don’t have to muddle through it alone. A payroll services company might be your ticket to freedom. But not all payroll services companies are alike in the services they provide. So don’t simply Google “payroll services near me” and go with the first one that pops up. Take the time to know what you should be getting for your money so you get the most comprehensive assistance.
What is a Payroll Services Provider?
Payroll services providers are companies that process all the payroll calculations, do the year-end taxes, and offer payroll tax statements, along with other add-ons. Not only do they help to make sure that everyone is paid correctly; they ensure that you correctly pay your taxes so that you don’t run into problems with the IRS. They can also aid in the complexities of filing deposits, dealing with requirements, and streamlining business operations.
What Extras Should You Look For?
In addition to payroll and taxes, full-service payroll services can help with paying both full-time and part-time employees as well as independent contractors, which can be more complicated. They also can operate online via the cloud so you don’t have to invest in software. And you can run your payroll from any location. A full-service company can also account for things like shift differentials, holiday pay, taxes, Social Security benefits, and overtime.
How You Can Benefit From a Payroll Service
Payroll is one of those things that might not seem all that important, but it is critical to your overall bottom line. If not done correctly, not only can it lead to disgruntled employees; you can have issues with the Wage and Hour Division and the Department of Labor. If you send up a red flag, that can lead to a lengthy investigation that can be costly from the standpoint of accounting, legal fees, time, resources, and - most importantly - reputation.
The Problems of Payroll Errors
In most instances, a payroll error can happen and it is nothing but an honest mistake. But even small errors take time and investigation to correct. And sometimes it can be a bit more than an employer has the skill-set to figure out, which can lead to more errors and complications. The best way to keep everything running smoothly is to have someone who is knowledgeable about taxes and payroll to prevent any issues in the first place. The small cost of getting things right is well worth taking the stress off you, avoiding a problem with a trusted employee, and worse, having an agency look into your financial dealings with a fine-tooth comb.
Things related to independent contractors and freelance payroll have gotten more complex. Knowing the difference between employees vs. contractors and exempt vs. not exempt is a must to be compliant. Misclassifying them can lead to some significant problems, and for the most part, it is really all about a judgment call. And it isn’t just about being compliant; knowing how to reduce your costs with an internal plan that more realistically reflects the cost of labor and an understanding of local, state, and federal hour and wage rules is an invaluable skill. Having someone who can guide you on the best plan of action can really save you time, money, and a lot of headaches down the road. Payroll may seem like a simple process: someone works for you, you pay them. But the tax rules continue to change, as do classifications of workers. If you aren’t sure how to interpret it all, making an error can be really simple. But unfortunately, that simple error can cost you a whole lot. To keep your employees happy and your bottom line safe, don’t just Google “payroll services near me” and choose. Benefit from our decades of experience in payroll services, and let us bring you up-to-date - technologically and otherwise. Contact us today to help get your employees paid correctly!