Courtesy Priority One Payroll LLC
BY JEANNINE DUBIAC, FPC
For many business owners, payroll taxes can be confusing and overwhelming.
Payroll doesn’t stop with just issuing checks. Compliance with federal, state and local agencies can be a time-consuming responsibility, requiring detailed record keeping and up-to-date compliance with the ever changing tax laws.
Calculating the employees’ withholdings and determining the employer taxes is just one small piece that a payroll service offers to small businesses. The payroll service becomes the responsible party for maintaining all payroll tax requirements on a consistent basis.
Experienced payroll providers should ensure the job is done right, getting employees paid on time, correctly, every time and allowing the business owner to focus on running their core business.
Payroll services save businesses money by eliminating their tax liability and potential penalties. They provide detailed information regarding tax payments and employee wages to your CPA.
Payroll services focus their time on payroll, and only payroll-related items. The cost of using a payroll service will cost the employer a fraction of what it would cost for them to complete the required filings on their own. Not to mention the added liability for potential tax errors. (If the payroll service makes a mistake, they pay the fine).
Using a payroll service allows businesses to save money and improve productivity. At the same time, a professional service affords access to payroll experts and advanced technology, ensuring that the paperwork is completed on time and accurately.
Help your employees save time by offering direct deposit. A business can streamline the process and reduce the amount of time spent on reconciling the bank accounts. Employees can reduce the amount of lost time by going to the bank to cash their checks.
Take advantage of technology through a payroll service. This includes affordable time and attendance solutions: a web clock, swipe/badge clocks, hand scanners, and mobile apps that offer a wide variety of affordable automated time and attendance solutions. Time and attendance solutions are available for employers with as few as a single employee.
Looking for year-end tax advantages? Think about what needs to happen at the end of the year.
W-2s are due to be prepared and filed, not to mention being up-to-date on the latest tax changes from the IRS or Department of Labor. W-2s must be distributed to the employees by Jan. 31 each year. Prior to W-2s, don’t forget about all the pieces that must be reported on the W-2.
Have taxable fringe benefits, third-party sick pay, and health insurance contributions for the 2 percent shareholder been reported properly?
After the W-2s have been prepared, Social Security has their filing requirements.
CPAs will need payroll information to complete the employer’s corporate or personal tax return, not limited to the employee earnings summaries, W-2s and 940 information. Plus, don’t forget about the quarterly reports from throughout the year.
Payroll services are one area of business that can save business owners both time and money.
Dubiac is the owner of Priority One Payroll LLC, a privately owned local payroll service provider in Malta.