Payroll at times can be a tedious process especially for small businesses with limited resources. Payroll outsourcing can prove to be a great solution to overcome challenges associated with Payroll Processing. For small business owners it is important that they have control over every aspect of their business, which includes payroll. However, not everything can be managed single-handedly or it may shift your focus to activities that hinder the growth of your business though being important.
Payroll is one such function of a business, which not only brings with it many challenges but if not handled properly also brings in penalties. For this reason, payroll outsourcing for small businesses can prove to be highly advantageous. Let us discuss some of the payroll challenges that small businesses face and see how outsourcing this function can benefit the business.
Small business payroll challenges and solutions
Challenge 1: It is very important that the employee satisfaction is high. Delays that occur in pay because of bank holidays or some other reason can become one reason why employees may not be satisfied.
- Solution: This payroll challenge can be handled by outsourcing your payroll to a Payroll service If there are chances of any such delays occurring in payment, they can provide you with a predefined schedule of when the employees will be paid under such circumstances?
Challenge 2: Time management and recording is one other challenge that they often face. They often resort to methods such as time-sheets, for recording the work time of employees. Such methods are often inconsistent and may cause problems when it comes to paying the employees. Click here!
- Solution: One of the major benefits of Payroll outsourcing to a payroll company is that it tracks the time of employees with the help of an online time clock or time management software. These are much more accurate in comparison to manual methods that small businesses adopt As a result, there are less chances of discrepancies and issues arising at the time of pay with regards to time.
Challenge 3: Tax related payroll challenges that small businesses experience are calculating compensation insurance, withholding correct taxes from paychecks, payment of taxes and timely tax return filings. If there are any glitches or mistakes in these processes, there is a high possibility that you may end up paying penalties. Moreover, IRS has been focusing its efforts on increased tax compliance by small businesses, which makes it important to know the payroll tax audit triggers. There are statistics which say that nearly 40% of small businesses incur nearly $845 after IRS penalties.
- Solution: Avoiding such penalties and handling all the above mentioned processes on a timely basis are one of the major benefits of Payroll outsourcing Outsourcing vendors have experts who are well versed in federal, state and local payroll taxes. Their expertise minimizes the risk penalties.
On a concluding note, small business owners need to master the art of entrusting the responsibility and control of crucial tasks such as payroll to experts. Get more from payroll services through better integration and consolidation – and preparation for handling ACA requirements. It’s time to rethink payroll. Are you ready? Payroll services Australia are ready when your business is.