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Payroll Outsourcing May Benefit Your Business

Author: Keith Huggett

No matter how you slice it, payroll functions are cumbersome and costly. Even automated systems that simplify manual recordkeeping can only do so much to cut down on payroll-related headaches, particularly when it comes to payroll tax filing. 

Your best option? Outsource some or all of your payroll functions to us. An expert accounting firm like ours can provide advice and services tailored to your company's needs, freeing employees for customer service and other revenue-driving functions. We can handle just your tax filings or manage the entire payroll process for you.

Small businesses that cannot afford inhouse accountants often struggle with payroll tax issues. Some questions that often come up include:

• How are employee payroll taxes determined?

• How often does payroll tax filing need to occur?

• Do I need to file paperwork each time I make a payroll tax deposit?

• What happens if a mistake is made in payroll tax calculations?

In addition to unanswered questions and uneasy feelings, if your company is handling payroll taxes internally, you may be spending unnecessary time and money. Here are just some of the areas where your people may be wasting valuable, billable hours:

• Setting up and maintaining complex payroll reporting and calculations

• Completing, filing, routing and saving extensive tax-related paperwork

• Tracking payroll tax deadlines and making payments or deposits

When you are paying people for their time, their time becomes your money. You can probably find more useful, value-added functions for your team than babysitting payroll forms. At the same time, it is essential to keep accurate payroll records and perform payroll tax filing on time. The consequences of dropping the ball on employment taxes can be disastrous, as the IRS assesses steep fines on late or missed payments.

So you probably find yourself in a quandary where payroll is concerned. You're trying to economize on related staff time and costs, but keeping up with strict government requirements is a challenge.

Let us take this onerous burden off of your hands. Contact us at The Tax Office today for a free consultation. We have decades of experience in accounting, tax and payroll management that we will happily put to use for you.

Outsourcing Saves Money and Errors

Author: Keith Huggett

If you're already familiar with all of the minutia required to do an error-free payroll run, you know how time-consuming it can be, even with QuickBooks' capable help. You're spending valuable time that could be used to grow your business on tasks such as:

• Collecting timesheets
• Entering timesheet data into QuickBooks
• Printing checks
• Distributing checks
• Paying and filing state and federal employer taxes
• Updating the standard mileage rate
• Updating your company's state unemployment tax rate
• Setting up and maintaining withholding for company-sponsored benefits
• Creating year-end payroll forms 

These steps leave no room for error, and payroll mistakes can become quite costly. Payroll outsourcing can help eliminate these time-consuming tasks so you and your staff can focus on more important business issues. You don't have to train specialized staff, and you no longer have to worry about constant changes in the tax law. Payroll outsourcing can make your company operate even more efficiently.

By outsourcing your payroll, you can often also outsource your bookkeeping to manage all of your accounting functions at one time in one place. At the Tax Office, Inc., we specialize in outsourced back office functions. Contact us today to learn more about our outsourced payroll and bookkeeping and how it can free up time, ensure accuracy and help you stay compliant with critical regulations.

Why Outsourcing Could Be the Better Option

Author: Keith Huggett

Are you still doing your own payroll activities in house? Why? Outsourcing your payroll makes it easier to run your business, saves you time and should save you money. Here are just a few reasons why:

• A third-party service can cut payroll checks and direct deposits for you from a separate account, hiding your business account number from your employees.
• Outsourced payroll services save you from the tedious process of actually doing the payroll. All that you will need to do is to transmit how many hours each employee worked and what rate to pay them.
• With a third party helping you, you do not have to worry about updating your payroll system for yearly updates in withholding tables.
• Using a service to outsource your payroll activities frees up you or your employee to work on more productive activities, helping to move your business forward. Imagine how much money you could save if the time you spend paying your employees was instead spent on rebidding vendor contracts for lower prices.
• You are likely to see a number of changes to tax law over the next few years, just as there have been over the past few years. All of these will affect how your calculate your payroll.
• Using an outside vendor for payroll activities gives you an additional layer of protection if there is an error and you face an audit. Many payroll companies will provide a guarantee of accuracy and take responsibility for any mistakes that they make.

If you would like to learn more about the many benefits of using a third-party payroll service, contact The Tax Office, Inc. Their staff of accounting and payroll professionals can help you decide if outsourcing is a better option for you and your business.

Hiring Smart Can Save You Time & Money!

Author: Paul Cantelli

Payroll outsourcing is an excellent way to save time and increase efficiency. It can also help protect you from common payroll tax mistakes that can result in fines or other penalties. While it is possible to keep this function in-house, most small businesses find that they don't have the expertise to do it themselves or the budget to hire the staff to do it.

When it comes to selecting an outsourced payroll provider, you have many options. However, because it is so important to get it right, you have to be sure you are selecting the right provider. Look for the following features as you explore your payroll outsourcing options:

• Guarantees: Look for a provider who will stand behind their service. If they make a mistake, your company is responsible for paying penalties or resolving the problem. However, some payroll outsourcing providers will commit to paying any fines or interests that are incurred as a result of their errors. Ideally, the provider won't make any mistakes at all, but if they do, you need to know who will take responsibility.
• Tailored services: Bundled service packages always sound like a great idea, but if you're not actually using all the services in the bundle, you are potentially wasting money. Look for a provider that will tailor their services to meet your specific needs so you don't have to pay for services you are not using.
• A solid track record: Due diligence is essential when starting with a new payroll provider. Ask for client referrals and speak with existing and former customers. You can also check with your local Better Business Bureau to see if any complaints have been filed.

If you are interested in learning more about payroll outsourcing, get in touch with the experts at The Tax Office, Inc. We provide outsourced payroll and bookkeeping so you can focus on growing your business, not on the day-to-day financial details. Contact us to schedule a consultation or to learn more about how payroll outsourcing can benefit your business.

Tips to Consider for the New Year

Author: Keith Huggett 

How do you choose your payroll provider? To begin with you should start by knowing exactly what services you are going to need throughout the coming year.  Are you expanding your business? How many full-time, full-time equivalent, part-time or contract employees will you have on your payroll? How often will you be paying them? Will anyone be getting a bonus this year? Will you need human resources services? Will you be offering 401(k)s or other deductions? Sounds incredibly complicated doesn't it?

When it comes down to it, your payroll service should provide 3 basic services for you:

1. Pay your employees on time.
2. Pay your payroll taxes on time.
3. File your payroll tax forms on time.

Some additional services that your payroll service can provide for you, most likely at an additional cost include:

1. W2 forms
2. Direct deposit
3. Online pay stubs
4. Online time tracking

When you begin your search for a payroll service, conducting your interview is crucial. Here are some critical questions to consider before you make your final decision:

1. What is the turnaround rate?
2. If the payroll service makes a mistake, who is liable for it?
3. How long does it take to fix a mistake?
4. Are there additional charges for adding or modifying employee payroll?
5. Does the annual fee change after the first year?
6. How often are reports sent out?
7. Does the payroll service offer retirement plans?
8. Does the service integrate with your accounting software?
9. What back office software does the service use?
10. What are the hours of operation and the means of customer service?
11. Will you be assigned a service representative or will you be working with someone new each time you make contact?
12. How often will there be communications from the payroll service?

After deciding on a payroll company, you should set up a schedule determining when you will check in with the service and how often you will get their reports.  Keep watch on your bank statements and make certain there aren't any drastic changes once the payroll service begins.

The only way to be certain that you are happy with a payroll company is trial and error. You need to test the waters.  If you have any questions about payroll, the specialists at The Tax Office, Inc., would be happy to provide the answers. The Tax Office, Inc., is a full service tax, bookkeeping, payroll, and tax representation company.