TABLE OF CONTENTS:
- Introduction
- Advantages To A Small Business Using Outside Payroll Services
- Evaluating Payroll Service Companies
- Online Payroll Services
- Frequently Asked Questions (FAQs)
- Glossary of Terms
2. ADVANTAGES TO A SMALL BUSINESS USING OUTSIDE PAYROLL SERVICES
A major advantage of outsourcing your business payroll responsibilities to a professional Payroll Service is their ability to maintain payroll tax accounts on a regular basis.
Small business owners and management realize payroll processing does not stop with issuing paychecks. Compliance with federal, state, and local payroll tax accounts can be a time consuming responsibility, requiring detailed record keeping. It also requires keeping up with changing tax laws.
Payroll Service providors generally include payroll tax responsibilities as part of their service. The Payroll Service company will make necessary deposits, on behalf of the business, into Social Security, Medicare, Federal and State Withholding and Unemployment taxes and other applicable withholding and employer taxes - as well as preparing and filing all necessary quarterly and annual reports.
An outside Payroll Service company is able to keep abreast of new laws governing payroll as it relates to individual industry compliance. Often, a small business owner or manager does not have the time or resources to keep current periodic changes in payroll laws.
Another advantage to using an outside Payroll Service is cost. Because Payroll Service companies focus their service directly on payroll, they are able to provide the service at a fraction of time and cost to the small business, often saving the small business thousands of dollars annually.
Most small business find the time and cost savings using an outside Payroll Service company an advantage the often turns into increased profitability of their operations.