Last month, we discussed some of the benefits of using payroll outsourcing services for your business. This month, we are going to delve deeper into some of benefits mentioned previously. In addition to saving you time, money, and creating piece of mind, payroll outsourcing can help keep your business on track in several other ways.
Fraud Check & Enhanced Security
No matter how much you may trust your employees, there is always a risk of identity theft, embezzlement of funds, or tampering with company files when your payroll is done in-house.
There is still risk with in-house payroll software too – how secure is your data on the company server? These are all issues that a business owner must contend with which can consume a lot of time and energy.
Professional payroll outsourcing companies are accountable for all transaction processing and quality control. Payroll services offer technologies that track and alert clients of payroll fraud. Online payroll solutions also help to keep your payroll data confidential and serve as a backup for that data too.
Many small businesses struggle to stay up-to-date with the latest versions of payroll software and tax tables. Using the wrong tax tables can result in penalties, creating unnecessary expenses for your company. In addition, keeping your software up-to-date is another regular expense your business will have to incur if payroll is done in-house. With outsourced payroll companies, your business can avoid these additional expenses and save time as well.
Avoiding Penalties During Tax Season
According to the IRS, around 40 percent of small businesses pay an average of $845 in penalties for late or incorrect filings and payments. These penalties for errors and late payroll can add up.
Payroll mistakes not being reported in an accurate or timely manner to the government can be a red flag to the IRS, in addition to upsetting your employees. These mistakes can lead to audits as well.
Hiring payroll management can help keep your business on top of changing government rules and regulations, changing tax rates, and help to ensure that you won’t be penalized by the IRS. In addition, these payroll services can calculate payroll taxes, manage filings and payments, and will take on the cost of any penalties due to miscalculations or late payments.
Avoiding Bank Reconciliation
Bank reconciliations are a regular part of payroll and consume a lot of time and effort just to keep track of payments that go through the bank during the rolling out of paychecks. Outsourced payroll services can save you the hassle and headache, and take care of this for your business entirely.
Most small businesses don’t have time or resources to research the changing payroll trends, regulations, and government forms. Outsourcing payroll allows businesses to use the expertise that was formerly only available to large companies.
The best payroll service providers offer experienced professionals to handle your payroll processing needs. The consultants can give your company tips and advice on payroll services to help your keep your business aware of the latest payroll processing trends.
Considering Outsourcing Your Payroll Processes?
At Scenic City Business Solutions, we have experienced payroll specialists who can help with your payroll needs. Give us a call at (423) 777-4822, email us at email@example.com or complete our online contact form to start working on your payroll solution today.