Should I do payroll myself or outsource it?
Is this a question you find you or your staff are consistently asking? If so, then here are 3 things to consider (and 3 reasons why you want to outsource your payroll).
3 things to consider about payroll when making the decision on whether you want to do it in house or outsource it:
1. Do you have a clear understanding of how to set payroll up in your QuickBooks or other accounting system?
Payroll is one of those areas you do not want to do “half way.” Ask anyone who does payroll and they’ll tell you there is a lot more to it than may originally be seen. You have to have a good understanding of what forms you need your staff to complete, how to set up payroll in your accounting system, what deductions you need to set up, how to process the payroll, then how to remit the taxes and paperwork to the various tax agencies.
2. Are you familiar with the various taxes and payroll deductions you need to include?
Some of the most popular deductions include:
- Federal Taxes
- State Taxes
- City/Local Taxes
- Child Support
3. Do you have the time to devote to processing payroll?
Ask any employee and they’ll tell you “Don’t mess with their payroll.” All it takes is one improper payroll filing and your employee morale is in jeopardy.
Payroll should not be something you squeeze in at the 11th hour. You need to ensure that you have the time to devote to understanding the full process of payroll as it can cause serious employee morale issues as well as serious tax issues if done incorrectly.
Not remitting your payroll taxes on time can cost your business double in penalties, let alone audit issues and potential business closure.
We have found various payroll options that are very cost effective for our clients. It is good business sense to outsource payroll and focus on what you do best! The costs of incorrect payroll and the stress of figuring it out just don’t justify doing it in house! As a business owner, you are already trying to wear many hats. The key is understanding when you are the best solution and when outsourcing is the best solution. Have questions or need help? Feel free to give us a call to discuss pros and cons of outsourcing your payroll.