As most engine shops already realize, paying employees involves much more than simply writing a check. Business owners must calculate tax payments, monitor hundreds of state and local jurisdictional requirements, and keep up with new-hire reporting, quarterly and annual tax returns, direct deposits and issuing W-2s.
With these complexities, more small companies are choosing to outsource payroll to professionals who specialize in these tasks. Benefits of outsourcing payroll services include:
• Cost savings: The Outsourcing Institute estimates that companies that outsource payroll experience a cost savings of at least 9 percent.
• Time savings: According to the Small Business Administration, small business owners spend approximately 35 to 45 percent of their time handling personnel-related paperwork. That takes time away from your core activities – fixing engines and managing your business.
• Reduced liabilities: According to some estimates, small business owners who do not outsource payroll are fined an average of $845 per year by the IRS for inaccurate tax filing.
• Better service: Improve your employee recruiting and retention efforts by offering an array of payroll options, such as direct deposit. In fact, some payroll outsourcing companies offer additional services, such as 401(k) and Section 125 plan administration, workers’ compensation, health insurance and COBRA/HIPPA compliance.
Interestingly, small business owners can also outsource payroll functions via web-based payroll programs that allow submission of payroll at any time from any computer. Within approximately two days, the Internet-based payroll provider delivers the printed checks.
Article courtesy of Tire Review.