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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.

Build Up That Work Ethic Early In Life

Author: Jenny Shilling 

Does your teenager need a job? Would you like to cut your business tax liability and get  some additional help? Then hire your child; it's an excellent way to accomplish these goals.

The IRS lets you hire your children without paying any payroll taxes as long as you own a sole proprietorship or LLC. If you pay your child $9 an hour to work for you, all it will cost you is $9 an hour. You will not have to pay traditional payroll taxes for FICA contributions, nor will you have to pay into your worker's compensation insurance fund. 

Of course, the IRS has a few rules you will have to follow when you hire your teen. The first is that they will have to work for your business. Simply paying them through your business for doing household chores will not withstand an audit. You will also have to pay them reasonable wages. Paying your teenager $100 a hour to answer the phone will be another red flag for the IRS.

Hiring your kids does more than just save you money on your payroll taxes; it can also cut your income tax liability. In the 2013 tax year, your child's first $6100 in income is tax-free since it gets covered by the standard deduction. Paying him this amount means that you take the income out of your taxable pool and put it onto his return as nontaxable income. If you put two children to work, you could shelter up to $12,200 in income a year from taxes.

With this in mind, it might make sense to fire your kids from household chores, have them work in your business and hire a maid to help with the house.

But remember, it's a wise idea to have an accountant help you plan this strategy. Contact The Tax Office, Inc. to get started on building your kids' work ethic and reducing your taxes.