If a business owner chooses to manage payroll with their own staff, that staff gets tasked with multiple responsibilities. These responsibilities include keeping track of total work hours, breaks taken, calculating gross to net for the performance of each employee and their appropriate pay, creating fair pay rates for each physician, calculating and depositing the payroll taxes associated with each member of your staff, preparing and filing tax documents for employees, filing corporate tax returns and more. That huge list of tax responsibilities and payroll responsibilities as a lot of reasons for any business owner to think about outsourcing. Outsourcing payroll processing helps with each of those responsibilities. Furthermore, it increases the likelihood that compliance will be met on tax and payroll issues.
Compliance refers to the laws surrounding payroll processing and payroll accounting. Errors with payroll services or payroll tax cause at least three major issues for business owners. First, you could face penalties whether or not payroll errors were intentional. Most audits are to verify whether or not payroll is being treated properly at a company. Second, whether or not your payroll errors were intentional, the dark cloud of an audit can ruin your reputation as a business owner. Employees that have to stop coming to work while you sort out payroll problems are likely to look for other jobs. Similarly, investors rarely agree to keep capital in an organization that has suffered multiple audits, whether due to honest mistakes or manipulation of payroll figures.
Compliance and payroll processing must be considered as part of a business process itself. In other words, think about payroll processing with the same mentality that you would think about investing in a new product or service. Paying for the highest quality of inputs, or in this case outsourced payroll processing to a reliable payroll processing service in your area, ensures that your business is in compliance. Payroll fraud risk is minimized by outsourcing this process.
Millions of dollars in tax and labor compliance penalties are assessed every year. Withholding taxes and payroll taxes must be treated separately for every business, though some business owners do not know the difference. Paychex is a payroll processing service with mobile applications that simplify this process. Learn more about the benefits of outsourcing your payroll to professionals by researching these services online and finding the right program for your company based on size, number of employees and market cap.