Determining whether you should invest in a payroll service can be a difficult process for small to medium-sized business owners. Running any business is challenging as it is, especially when you are trying to balance a budget that will be sustainable long-term. While most associate payroll services simply with printing and distributing paychecks to employees on payday, most payroll services offer much more than that. When looking for payroll services, you should know exactly what features to expect. Read on to learn more.
Payroll services do not simply collect payroll records from a business and turn those records into a printed paycheck each pay period. Rather, a good payroll service will handle every step of the payroll process. This includes monitoring hours, calculating pay, factoring withholdings, handling direct deposits, completing tax documents, and managing the company’s employee portal. The service covers payroll in its entirety, which helps ensure that payroll is calculated correctly and in a timely manner.
Because of this, payroll services stand to save companies both time and money that they would ordinarily spend trying to navigate the complexities of payroll processing.
In addition to basic payroll tasks, many payroll service providers also cover tax services. This means that the payroll service will carefully calculate figures to determine what tax bracket a business falls into, what taxes are due and when the due dates are approaching. Most payroll services will also fill out and submit tax documents for the business before everything is due, as well as ensuring appropriate tax compliance. Because payroll providers are typically well-versed in business tax law, they’re able to keep accurate tax records and avoid potential tax issues in the future.
Payroll services often cover employee tax forms as well, and will check, print, and distribute them when the tax season rolls around.
Perhaps most impressive, many payroll services can offer reports that give business owners and themselves a deeper understanding of the way the business operates. Such services will monitor employee attendance, time at work, and paid time off taken to ensure that the business is running smoothly. With these reports, owners can take a close look at which employees are showing up on time for their shifts, which employees are calling in too frequently, how many hours are invested in each department during a pay period, and other work characteristics that increase or decrease productivity.
With these reports, business owners devise and enact new plans to improve how they and their employees use resources, money, and time.
In addition to being experienced with tax laws, payroll service providers are typically up to speed on new labor laws and can help business owners be certain that they’re in compliance with said laws. There are different regulations that come about for different-sized businesses, worker types, industries, and more. To be certain that you’re paying your employees fairly and maintaining your compliance with the law, it’s good to have professionals overseeing the way your company operates. This way, it’s easier to keep an eye out for errors or violations so that changes can be made as soon as possible.
Bottom line: Payroll services have come a long way over the years and now offer a wide array of features to help a business improve its proficiency and employee loyalty while maintaining a compliant relationship with the law and IRS. Consider making the investment today.