Payroll can be a time-consuming hassle for every business, but it can be an even bigger strain on small businesses. Luckily, payroll can easily be outsourced to a payroll service. Here are six benefits of utilizing a payroll service.
1. Reduced Costs
Hiring a payroll service eliminates the need to employ someone to handle the paychecks. While there are going to be some costs associated with hiring a payroll service, they will be much lower than employing a full-time or part-time employee to handle the payroll. Cutting this cost should save your business thousands each year.
2. No Tax Penalties
The IRS claims that approximately 40 percent of small businesses end up paying penalties on their taxes due to incorrect or late filings. These penalties average just under $1,000, but they can be completely avoided by using a payroll service. Most large payroll services will have the resources to make sure your tax information is filed in a timely manner. If they happen to incur a penalty, then they will pay it themselves.
3. Direct Deposit
Almost all employees want to have their checks directly deposited in their accounts because it’s convenient, but this is difficult for a small business. Using a payroll service allows every business to provide a service that employees crave, which will, in turn, boost office morale. A direct deposit system also eliminates the hassle and time-consumption of paper checks.
Having one bookkeeper handle the payroll system for the entire business becomes a major problem if he or she decides to find another job or retire. While it may be possible to find someone inside the business to handle the payroll until you hire a new bookkeeper, he or she will not be able to complete their normal job fully. The entire process of finding someone new is not worth the hassle when a payroll service can easily eliminate your headache.
5. Payroll Handled by the Best
While your bookkeeper may be great at their job, it is difficult for one person to stay current on the latest regulations and tax laws. If you hire a payroll service, then you guarantee your company gets the most knowledgeable service possible. Since the entire business revolves around handling payroll, it will take the time to stay up-to-date on every new regulation and law.
6. Peace of Mind
Hiring a payroll service will give you peace of mind that your payroll is being handled properly. By hiring a payroll service, you decrease the possibility of human error and computer glitches wrecking your payroll.