I have been fortunate to meet with over 3,000 businesses over the last ten years - from start-up restaurants with big dreams, to mature chains facing tough decisions. No matter what stage a company is in, payroll is constant; it is that big number that you have to hit 26 times a year.
These days, margins are getting pinched and cash flow is tighter.
Here a few reasons why using a service company may help you sleep better.
1. Peace of Mind - You are paying two important groups of people that frown upon mistakes - The IRS and your Employees. A service bureau takes full liability and responsibility for calculating, depositing, and filing all payroll taxes. If there is ever a payroll-related tax penalty or you get a love letter from the IRS, you are protected.
2. Back-up/Support - If you or your payroll clerk are out, sick, on vacation, etc. - you know you'll have an on-time, accurate payroll with no special arrangements. Also, by outsourcing, you're putting a tax and human resources expert on staff - protecting you from a broke government and a litigious society.
2. Back-up/Support - If you or your payroll clerk are out, sick, on vacation, etc. - you know you'll have an on-time, accurate payroll with no special arrangements. Also, by outsourcing, you're putting a tax and human resources expert on staff - protecting you from a broke government and a litigious society.
3. Cash Flow - By ACHing the funds for you directly to the IRS, you spread out your tax payments equally throughout the year. No surprises at quarter or year-end.
4. Time - Printing and signing checks, making multiple tax deposits, filing quarterlies, accurately preparing W-2's and other time-eaters. All non-revenue producing tasks - tangible hours that can instead go toward growing your business.
5. Other Features - Once the payroll engine is in place, you open up possibilities for direct deposit, time and attendance/POS integration, human resources assistance, pay-as-you-go workers compensation, archived electronic reports and pay-stubs and much more.
In the end, not only can you focus on what you do best, you can shift energy toward learning and embracing new revenue-producing tools such as social media, that brings money in, so you're ready for when it's time to send it back out.
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This is slightly off topic, Tony.
But, do you see a benefit in outsourcing tax because of the new regulations?
http://www.thestreet.com/video/12944709/liberty-tax-ceo-change-in-washington-good-for-tax-preparers.html