So, you’re a small or medium sized business with limited resources and you’re finding yourself stretched especially in payroll and tax returns. In its 2017 Small Business Taxation Survey, the National Small Business Association (NSBA) revealed that nearly 30% of small businesses in the US say they spend more than 80 hours, almost two full weeks of work each year, on federal taxes alone. And then there is payday. The day in the week or month that workers look forward to, but for you, the owner of a small or mid-sized business, payday can be a nightmare. Late nights checking and rechecking all take valuable time away from areas that that actually drive your business forward.
If you have been running payroll alone, you will know the many problems this creates. However, if you have a business that you wish to grow, it is high time you looked at how global payroll services with their automated offerings can help smaller businesses achieve their business goals. Many small businesses are identifying the need to automate their payroll with simple and effective software, allowing resources to be devoted to the business areas that foster growth. If your business is to compete, then you are going to have to look at your business payroll needs.
Time is Money
We already know that federal taxes can take up two full weeks of work, but according to Score, small businesses spend between one and five hours every month doing payroll. Up to 140 hours every year is being spent on something that payroll companies for small businesses take care of for you. Just think what that time could be spent on driving your business forward. Weeks’ worth of work saved, not to mention the stress and headaches, payroll and tax returns inevitably bring. Your business needs you and using payroll services for a small business will enable you to focus on growing your business.
Cut Out the Costly Mistakes
Using payroll companies for small businesses reduces mistakes. In 2015, the IRS issued $4.27 billion in fines for errors organizations made in their employment taxes. Mistakes with payroll and taxes are costly, take time to correct, and heap untold amounts of stress. More than 40% of small businesses receive fines averaging $850 each year for tax related issues, the most of which are missed or late payments. In the US, there are different federal, state, and local taxes which could apply to your business.
Good payroll services for small business will take care of that for you and prevent costly, timely and stressful errors being made. The best payroll service for a small business will calculate and withhold taxes, as well as help you with your end of year filings, avoiding the most common errors associated with payroll. Payroll systems are updated automatically so you stay on top of any state and federal requirements that may change. According to Inc, the IRS punishes approximately one in every three business owners for errors made with payroll. Selecting the best payroll service for a small business will prevent errors being made, save money on potential fines, free up important time and cut out those headaches.
What to Look For in a Payroll Service for a Small Business
Google ‘payroll services’ and you’ll have half a million search results to wade through. Knowing which is the best payroll service for a small business can seem a daunting task. But let’s break down their functions and make that task easier. At a very basic level there are three important areas that your business payroll must take care of. Your payroll must accurately pay workers on time, pay all payroll taxes on time, and file your payroll tax forms in a timely manner. You need to complete all three to be compliant with the law(s) and not incur costly fines.
Automation reduces your workload and cuts out costly mistakes. From completing forms for new employees, to completing your payroll taxes, to ensuring your staff get paid on time, the capacity to set it and forget it, is something that adds great value, both tangible and intangible, to your business.
Each business is different. You may run payroll weekly, bi-weekly or monthly. You may offer benefits or provide the irregular bonus. In all cases, the best payroll for a small business should be customizable to suit your needs. If not, you will end up spending more time than you care to, on admin tasks which kind of defeats the purpose of using a payroll software.
A good payroll software will do much of the heavy lifting with your all-important employment taxes. It will withhold and file quarterly reports whilst preparing W-2s and 1099s. A good payroll software will keep up-to-date on any local, state and Federal taxes as well as ensuring your end-of-year accounting goes smoothly and free of costly mistakes.
Employee Self Service
Enabling workers to have access to their own salary and benefits records saves you time and hassle by empowering workers to find up their old pay slips, W-2s or benefits records. Good payroll companies for small business will have an employee portal so they can access information when they need it and not distract you with admin requests taking time that you simply haven’t got.
Integration With Other Software
If you are a small business, the chances are that you use some sort of accounting software. A good payroll software can be integrated with accounting software as well as any time-tracking software you use or plan to use.
Using Payroll Services For a Small Business – There’s No Excuse Not To
In 2016 there were 28.8 million small businesses in the US, a third of which reported that the greatest challenge to their growth and survival was the payment of state, local and Federal taxes. If you have been managing payroll yourself and carrying this burden, it is to be applauded. However, help is at hand. Efficient payroll services for a small business will make your life easier, cut stress, free up valued time and most likely make you and your workers happier and more productive.