Should I Outsource my Business Payroll?
I only have a few employees, do I really need payroll outsourcing? What are the reasons I should outsource? Well, even if you only have a few employees you may need or want to outsource, in other words hand over your payroll and all responsibilities attached to it to someone else. To help you decide if you want to or not, here’s some simple pros of doing so.see this latest article posted.
This may be simply paying your workers which you can calculate by multiplying the hours worked by rate paid. However if you are producing a product you will need to now the costing involved in making every item. This can be a complicated process and possibly more than a clerical person could handle. Payroll outsourcing may be the best way forward in this case.
Multiple States, Multiple Localities
If you have employees in more than one state in say Australia you must abide by certain requirements for paying and reporting state income taxes. If you have employees in different cities in those states in Australia you may also have local income taxes to pay, report or withhold. Again this may be hard for a clerical person to do and you would be better using payroll services, Australia.
To do this you need to determine the federal tax withholding based on the employees W-4 which can be changed as often as the employees wants. You also need to determine state withholding for states with income taxes, based on the state W-4. Determine FICA taxes on wages over 7.65%, you must watch highly-paid employees to be sure their social security withholding is capped at the max for the year. And that is just to start; calculating these amounts is complicated and even for one employee the process is extremely time consuming. Payroll outsourcing is quite clearly the easiest option.
Paying and Reporting Payroll Taxes
Payment and reporting of payroll taxes can be extremely intimidating. Remember there are federal and state, withholding, FICA taxes, unemployment and workers compensation plus individual state payroll options. This means that taxes in Australia for example may not be the same in every state and city; payroll services, Australia could definitely be the best option for your business. This is not to mention the possibility you could miss a deadline for reporting or payment which will cost you money in penalties and fines.go to http://www.smallbusinesscomputing.com/biztools/cash-in-with-small-business-payroll-software.html for more detailed information.
Payroll outsourcing is something many businesses, even small with few employees consider in the early days. It is not hard to see why when you take into consideration all the complicated and time consuming tasks that are involved in running your payroll. It could well be the right option for your business, depending on circumstances and you should consider it carefully. When researching the benefits of payroll services to your business ensure you ask sales reps for companies you are considering plenty of questions including; what services they offer, what are the hidden costs and what experience does the company have?