Whether you have one employee or hundreds, you must follow the formal procedures that go into paying them. You can perform these payroll tasks yourself, or you can outsource the process by turning it over to a professional payroll service. It’s very important to remember that you, as the business owner, are responsible for everything payroll related.
At McDonnell Richardson CPA, PC we keep up with the thousands of federal, state and local taxing laws across the USA. Understanding the complexity, although all laws will not apply to most small businesses, and keeping up with new laws and regulations created every year takes away from the focus of your core business. Payroll is one of those critical functions that may not directly increase sales for your business but carried out poorly, it can put your business in a world of trouble. By outsourcing your administrative, nonprofit payroll tasks allows you to gain time to manage your growth and reduce the risk of payroll responsibilities not being processed properly.
As your business grows that usually comes with more employees. Keeping up with the latest technology to support your growth can be time consuming and takes away from your profit. By outsourcing your payroll responsibility, you will reduce the risk of errors and cut costs by overpaying employees to keep up with payroll responsibilities. The IRS claims 40 percent of small businesses pay an average of $845 per year for late or incorrect filings.