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A Knee Jerk Reaction Could Ruin Your Business

Understandably, many small business owners tighten their belts every chance they get. So in the discussion of whether or not to outsource payroll, some entrepreneurs have a knee jerk reaction and immediately say no. Is that really the wisest choice?

  • They often say no before they have even checked into a service like The Payroll Department.
  • They say no before they realize the payroll fees are very reasonable compared to the time it will take away from working to help their business grow and succeed.

In a recent taxation survey of 1500 small business owners, the National Small Business Association learned that 60% of small business owners handled payroll in-house while the other 40% chose to outsource. Those who choose to keep up with these responsibilities in-house don’t often understand the laborious efforts required of them. As a small business owner, you can expect to spend a minimum of six hours each and EVERY month on this task.

Outsourcing payroll could eliminate the stress of keeping up with the IRS and tax law changes.That six hours each month is required only for the paperwork. Constantly researching whether tax regulations have changed since your last payroll are not included in that six hours. When you really look at how much time you are devoting to payroll, you will discover that the amount of time adds up to nearly two weeks of time each year.

But as we are all aware, figuring hours and writing payroll checks are not the only tasks in the payroll chore. The Payroll Department reminds you of these additional responsibilities included in this very important part of small business success:

  • Keep up with all garnishments and employee
  • Withhold federal income taxes as well as other federal, state and local taxes for all
  • Keep up with each employee’s vacation hours, both earned and used.
  • File the IRS Form 941 four times throughout the year.
  • For the end-of-year preparation of paperwork, you are also required to file W-2s and 1099s.
  • Stay in the know about the ever-changing taxes with new laws and regulations.

If all you had to do was write a check, it would be easy. But payroll is more – much more – and if you make a mistake it is a costly mistake. Errors could actually jeopardize the viability of your small business.

So the next time you are thinking about outsourcing payroll to a payroll provider like The Payroll Department, don’t forget all these points. Contact Teresa Ray at The Payroll Department to find out how a payroll provider can actually help you move your business forward.

-Sherri of The Payroll Department Blog Team

Posted in: Operating a Small Business, Payroll, Payroll Taxes, Rules, Regulations and Laws

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Contributing to Your IRA – A Great Way to Plan for Your Future

You’ve got a long list of things to do, taking care of your business, your home, your family, and if you’re lucky, you’ve got a little time left to take care of yourself. One of the best ways you can look out for your own future is to plan for your retirement, especially if you are a small business owner. (more…)

Posted in: Payroll, Payroll Processing, Retirement plans

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Employers – 2015 FICA Tax Changes to Know

As a small business owner, wouldn’t it be nice if payroll taxes just stayed the same from one year to the next? You would know what’s expected of you and how to manage your company’s payroll taxes every year. Unfortunately, that’s just not the case. As of January 1, 2015, the government has made some FICA tax changes that employers need to be aware of since these changes will affect your company’s ability to accurately process your payroll. (more…)

Posted in: IRS and Tax forms, Payroll, Payroll Processing, Payroll Taxes, Rules, Regulations and Laws

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Payroll Services Must Know Tax Code for Fringe Benefits

We can safely say that the employers that The Payroll Department works with want to do the best they can for their employees. Of course, they have to balance fiscal responsibility with their own personal interest in providing benefits and health care to their employees. (more…)

Posted in: Benefits and Health Care, Operating a Small Business, Payroll, Payroll Processing, Rules, Regulations and Laws

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Bi-Weekly vs. Semi-Monthly Payroll

To the casual bystander, these two options may appear to be “basically the same,” however, employers should know the difference and employees have to understand how they are paid to prevent any misunderstandings. (more…)

Posted in: Operating a Small Business, Payroll, Payroll Processing, Payroll Taxes

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Oops! Is NOT What You Want to Hear When Dealing with Payroll

“Oh, it was just an honest mistake!” How many times have you heard (or said) that phrase? It is often used to describe a small error that was done with no malice or ill will and even conveys a sense that there was no real harm done. And sometimes that is true. But sometimes even what seems like a small mistake or an error that was not made due to recklessness or spite can have far-reaching consequences, especially when it has to do with payroll. (more…)

Posted in: Operating a Small Business, Payroll, Payroll Processing

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Know the Difference between Salary and Wage Duties

Are you a small business employer who has a hard time figuring out which employees can be paid a salary and which must be paid hourly? If so, you’re not alone. Many small business owners often have trouble making these determinations. But it’s important that you know the difference between exempt and non-exempt jobs, otherwise you may have to pay hefty fines due to misclassification of workers in the workplace. (more…)

Posted in: Churches and Non-Profit Employers, Payroll, Payroll Processing

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A Different Perspective on Small Business Payroll Taxes

There is no question that running a small business today is tough. Every expense and additional small business taxes makes it harder to make a profit and stay in business.

But small business owners and entrepreneurs have one thing to be thankful for… most of them don’t have to pay luxury taxes. Now if you will stretch your imagination and consider Major League Baseball teams as businesses, I’d like to share a recent news bit. (more…)

Posted in: Payroll, Payroll Processing, Payroll Taxes

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9 Valid Reasons for Small Business Owners to Outsource Payroll

Some small business owners make decisions that end up costing them more in the long run. If they keep late hours and miss weekend fun with friends and family, it takes a toll. They are also in grave danger of costing themselves more money than what they are trying to save, by doing their own payroll. The staff at The Payroll Department provides you with 9 valid reasons why you should call on us.

  1. Cost: Huge companies can maintain a payroll But if your business employs fewer than 20 jobs for workers, you can save money by contacting The Payroll Department. Figure out how many hours you or an employee spends each month on payroll. Add the time spent researching ever-changing tax laws and money spent on paper and ink, printing and distributing paychecks and creating payroll tax documents.
  2. Without the worry of tax compliance, small business owners have greater peace of mind!Accuracy: Payroll mistakes make employees angry and suspicious of you. Those mistakes can also alert the government, which might later result in an audit.
  3. Reliability: If you or an employee does payroll each pay period, reliability is based solely on not making a single error. The Payroll Department can do a better job of staying current with employees’ vacation hours, overtime pay, garnishments, etc. Why? Because, unlike you, that’s the only job we are doing for your small business.
  4. Speed: The Payroll Department staff are specialists. We have the technological resources to handle any temporary changes in your payroll, such as seasonal workers, contract workers, etc.
  5. Insight: The Payroll Department knows the ins and outs of payroll tax laws as well as federal, state and local regulations. Do you have the time to stay current with this information?
  6. Accountability: When your small business is in our very capable hands, we understand and respect our accountability to you, by law. It is part of our promise to you that we have a third-party bookkeeping service audit every client account one per quarter.
  7. Flexibility: Most entrepreneurs quickly get tired of wrestling with payroll. When we take this burden off your shoulders, you have time to do what you’re best at doing and growing your business.
  8. Security: When we are in charge of providing payroll services for your business, you don’t have to worry that employees handling the payroll might be embezzling from your business instead of simply doing the payroll.
  9. Worry: We guarantee you’ll sleep better at night. And you’ll spend your work days doing what comes most naturally to you, running a profitable small business.

Neither payroll nor taxes are business tasks any small business owner can afford to miss or handle inaccurately. Give yourself a break! Call on The Payroll Department. We’re on your team!

-Sherri of The Payroll Department Blog Team

Posted in: Operating a Small Business, Payroll, Payroll Processing

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Average Pay Increases of 3% Expected in 2015

Financial experts are saying that pay increases in 2015 are likely to average about 3% – just about the same as average increases for the last two years. Inflation is currently running about 2.1% so that means the average employees are barely keeping ahead of inflation. (more…)

Posted in: Churches and Non-Profit Employers, Payroll, Payroll Processing, Payroll Taxes

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