If you have no talent for accounting or have not experienced preparing payrolls before, then it would really be a challenge to prepare the payroll for your small business employees. Without a good accounting background, it would really be a challenge for small business owners to do the payroll by themselves. It is also a fact that if you do not make exact entries in your tax returns, the IRS can impose penalties on your business and this is why business owners also get intimidated when processing payroll. This is the reason why most business owners leave payroll processing to the experts. By outsourcing their payroll or processing it in-house by traditional means, you can have accurate entries when tax filing comes.
Here are some good reasons why it is best to outsource your payroll processing.
There will be no problem with the correctness of your payroll if a CPA does it for you since they are experts in accounting and payroll processes. But, if you will put a in-house accountant to do your payroll, it will really cost your much because they charge hundreds of dollars for every payroll run. And if you have a weekly or bi-weekly payroll, the amount will surely increase. Your business profits will get small with this expense.
Outsourcing your payroll processes will still give you the same CPA accuracy. The amount you pay for payroll outsourcing services is only a small fraction of the amount you pay an in-house accountant. So outsourcing gives you an accurate and cost effective payroll processing. If you do this, you will have a lot of savings.
There are a lot of business owners penalized each year by the IRS for paying or filing their payroll taxes incorrectly. With penalties to pay for erroneous payroll tax returns, trying to save money doing the payroll tax preparation by yourself will defeat your purpose. If you outsource to payroll services , they can automatically calculate, pay, and file your small business payroll taxes for you. You will always be on time to pay your payroll and to file your payroll tax returns since payroll outsourcing services are automated services and so they can give you fast results.
It is easy to use payroll processing through an outsourced small business payroll services. The simple process includes logging on to the online portal of your outsourcing company, enter the payroll details, submit it and everything is done.
If you are a business owners, then it is your duty to provide the W-2 or 1099 form to your employees or contractors. With outsourced payroll companies, this information is kept track for you and they will file it for you. Outsourced small business payroll services will allow you to be able to print W-2 and 1099 forms for your employees on the spot.