According to the IRS, businesses incurred $4.5 billion in payroll tax penalties last year. It’s likely that small businesses, particularly those doing payroll themselves, are bearing a large part of the brunt.
When it comes to payroll taxes or employment taxes (Social Security and Medicare; Federal Unemployment Tax, Federal Income Tax), there are simply too many complications, too many changing guidelines for many small business owners to keep up with.
Maybe it’s time to consider outsourcing your payroll processing. And if you’re currently outsourcing, perhaps look at making a switch to a more user friendly boutique alternative.
As a small business owner, you probably spend a lot of time evaluating and re-evaluating your vendors. Your payroll service is one of those areas that should be looked at, especially if you utilize one of the large national providers. Years ago, payroll was left to the two big firms because they had the manpower to keep up with the changing laws and they were able to complete all the federal and state tax filings that were needed throughout the filing year. Now with new technology and governments downloading compliance laws to centralized sites, the boutique vendors are squashing the giants! Here are several tell-tale signs that it may be time to get a new payroll service:
- You are still calling or faxing in payroll information. We all have fond memories of fax machines but if you’re required to use fax or phone then it’s likely time to consider an alternative. With current technology, being able to upload info anytime, anywhere from multiple devices is the way to go. Not to say that the occasional phone-in isn’t warranted, but alternatives should exist.
- You are having someone else prepare your payroll tax forms in addition to paying your payroll service. Wouldn’t it be easier if your payroll service took care of the taxes? It’s easy to do with todays’ new tools and specialized professionals. Look to have this with one provider.
- You are using valuable company time to prepare payroll. There always will be somebody in-house that has payroll duties, and it might be you. Using an outsourced service, however, dramatically reduces the time that the CEO or an employee needs to spend on payroll. Remember that your time is valuable so don’t forget to put a price on what you’re sacrificing by doing payroll in-house.
- You want to save money. Larger National Firms have a lot of hidden fees. Be careful, because their invoices are extremely complex and not user friendly so folks don’t pick up on all the additional costs. Make sure to fully understand what you’re paying per processing and then for any additional services such as tax filings, W-2 preparation, new hire reporting, phone support, etc.
- Customer service is still handled by non-payroll professionals. Larger firms break up customer service from sales from tax support, etc. More boutique firms provide one client contact who handles all aspects of your account and that limits client frustration when issues need to be handled timely.
Express Payroll is run and operated by CPA’s and trained accountants that specialize in the GYMNASTICS, DANCE, SWIMMING, KARATE, MUSIC/ARTS type industries, so we can provide the one-on-one attention and support that a small business owner needs and deserves. We have the best software product on the market and many of our features were custom built for these type of child focused centers. We are seamlessly integrated with Jackrabbit’s Time Clock and we have several features that enable owners to delegate the responsibility of processing payroll without allowing them to see what people are paid. Simply your Life!
Learn more about Express Payroll at www.express-payroll.com. Contact Express Payroll for more information at firstname.lastname@example.org or 877-774-3327.