As a business owner, time is one resource that you do not have. Luckily there are some excellent services out there that automate payroll processing for you, leaving you more time to focus on core business functions. Still not sure whether you should be using a payroll service for your business? You might be convinced by the 5 reasons below.
1. You’ll save money
Many small business owners pay an accountant loads of money to run their payroll for them, but why spend that cash if you don’t have to? If DIY payroll processing isn’t for you and you’d still like a cost-effective solution, try a payroll service.
Most of the payroll services out there calculate employee pay and taxes automatically and send your taxes and filings to the IRS and your state tax department for you. For example, ADP, the biggest payroll brand in the United States, offers an all-in-one solution for company owners with serious time constraints. Some of this software’s functionalities include check printing with alternate payment options, check signing and stuffing, and email reminders and alerts for security changes.
Tamka Brown, Senior Vice President of Human Resources at InFirst Federal Credit Union, shares her experience after transitioning to ADP: “I didn’t want to spend a lot of time on payroll so that I could have time to work toward other strategic goals and missions of the credit union. ADP has helped us streamline the payroll process – it’s now much easier and more efficient. I can log on to the website from anywhere and process payroll in 45 minutes to an hour.” You might also find a software like ADP’s helpful in freeing up time to focus on managing your business, while payroll processing happens not just automatically, but flawlessly.
2. You’ll always be tax compliant
With constantly fluctuating tax rates to keep up with, choosing to process payroll yourself puts you at risk of making many errors. Tax compliance requires registering your business before taxes are due, keeping up with current federal, state, and local payroll tax rates, as well as making sure that all forms are filled out correctly and submitted on time.
You know how it is—mistakes just happen. You have all the intention to pay payroll taxes. You set the money apart from your business funds. But oops, you completely miss your tax deposit due date, or even worse, you meet the deadline, but plug in the wrong information—only to face costly consequences. Just how costly? For 1-5 days delay you will be fined 2%, for 6-15 days you will be fined 5%, and for 16 or more you will be fined 10%.
With a payroll service, you will no longer have to sweat your taxes or worry about innocent human errors. For instance, Gusto, offers an impressive approach to tax filing, providing accurate and automatic deductions and filing of all payroll taxes. It automatically calculates, pays and files all of your local, state, and federal payroll taxes.
Rabee Ikkawi, co-founder of children’s clothing line, Kids Atelier, says that prior to using Gusto, he would spend hours every week to stay on top of each state’s regulations and filing taxes. “Now with Gusto, new hire reports are submitted automatically, all payroll taxes are filed, and Gusto’s dashboard notifies Rabee of any new requirements he needs to stay on top of.”
3. You’ll declutter your work environment
An organized, clutter-free work environment clears the mind and promotes productivity. Until not long ago, payroll processing came with endless paperwork, but with payroll software, there’s no need for that. While some business owners are still hesitant, thinking that paperwork is more reliable and will prevent them from ever losing important information, the opposite is actually true.
With a payroll service, all employee information is filled out in digital forms that are saved and stored safely. Employers can then access all forms as well as online reports at any time of need and download details for a single payroll or a single paycheck. Most payroll services also allow you to select a custom time-period and download a spreadsheet showcasing all paycheck details, employee totals, and company details, so all the information you need is always at your fingertips.
Deluxe, an easy-to-use desktop and mobile payroll software, and Square, a cloud-based payroll solution, both offer automatic, customized, and in-depth reporting to fit any type of business. While this might sound complicated, these reports are actually simple to extract, provide employers with a lot of necessary information, and most importantly—render paperwork unnecessary.
4. Your employees will have access to all of their information
As a small-medium business owner, employees surely approach you often with questions regarding deductions, status, paid time off requests, and more. Constantly tending to employees on HR matters is time consuming and takes away from more important tasks that you have on your plate.
With an online payroll solution, new employees onboard themselves and fill out all digital forms required by the system. Paycor is a payroll solution that provides employees with self-service access. With the software’s onboarding tool, each employee is able to file paperwork and review an employee handbook and policies before their first day of work. Larter, they can access all of their pay stubs and benefit information automatically through the Paycor mobile app. To keep things transparent, employees and management alike can benefit from Paycor’s intuitive dashboard and detailed reporting and analytics.
Andria Barbieri from the Goddard School, says: “Our entire payroll process has been simplified. We’ve cut down the number of employee questions because your self-service feature allows them to see their paystub and make updates to their information. They are no longer coming to me for changes.”
5. You’ll be able to pay it up anywhere, anytime
An online payroll solution dramatically cuts down the time you invest in running payroll and tending to employee requests. Some solutions even offer tablet and mobile apps so that you can process payroll during your morning commute, in bed finishing up a long day of work, or on the weekends. This way, you can spend your office hours on the tasks that really matter.
With Square’s Payroll app, employers to pay W-2 employees and 1099 contractors in just a few taps. The app works just like the web experience, allowing you to import timecards, enter hours, and submit a pay run. Filing, paying, and withholding payroll taxes takes place automatically, just like it does through the desktop service.
Square user, Adam, who owns a store in Wisconsin, says: “The fact that I can access that same data on a phone, tablet, or computer makes my job easier because I can do it during more windows of my weekly schedule.” Like Square, ADP, Paycor, Quickbooks and more, also offer employers mobile access to payroll solutions.
Which one’s right for you?
It all comes down to one thing—time is a scarce commodity for business owners. As a CEO or owner of a small-medium company, you want to make sure that you manage your time well and use it efficiently to grow your business. With so many cost-effective payroll services out there, all that’s left is to find the best payroll service for your business.