04 Mar Small Business | Why you need a Payroll Solution
When a small business has only a few employees, it might seem like running payroll in-house is the smartest and most cost-effective business move. However, when you begin to think about the tax regulations, legal considerations…not to mention the actual time it takes to facilitate the process, taking on payroll yourself might not be the best option.
Payroll is incredibly complex and ever-changing and mistakes can happen a bit more easily when you’re carrying out an essential business function that isn’t quite in your area of expertise. Payroll is a tough one to learn and keep up with and depending on how complicated your actual payroll is, you might think some of the following items feel all too familiar.
These are some of the most common errors seen when small business owners or HR managers do payroll themselves:
- Not understanding overtime and other labor laws in their state
- Misclassifying employees (employee vs. independent contractor)
- Incorrect taxes withheld for employees (state/SUI/local setup)
- Late or incorrect deposits
- Not understanding pre-tax/post-tax earnings and deductions
According to a to the 2015 NSBA Small Business Taxation survey, payroll taxes were ranked as the no. 1 most burdensome tax among small businesses. Worry no more because there is a solution for this.
Working with a trained payroll professional with access to many tax and compliance resources can help small businesses eliminate those errors.
Items like workers’ compensation, benefits, time and attendance, and retirement plans can all be integrated with a payroll system which leads to saving more time and effort in addition to preventing potential errors within those tasks.
Interested in our payroll solutions? Contact one of our HCM specialists to learn more about how we can help.