|Outsourcing payroll is usually the|
first expansion in a small business.
A: Basic services offered include calculating payroll and tax obligations, printing and distributing checks and producing reports. Additional services can include direct deposit, payroll tax filing, issuance of W-2 forms, 401(k) deductions, and tracking of employee benefits.
Q: When is the right time to outsource payroll?
A: It could become obvious one day that the time is right. But if you’re not sure, ask yourself these questions:
- Are you missing payroll deposit deadlines? If your payroll tax deposits aren’t timely, late deposit penalties can be as high as 10 percent.
- Are you unsure about your payroll tax calculations? Your errors can be held against you, and penalties can be assessed.
- Too many employees? If you have fewer than 20 employees it’s likely that you can save money by outsourcing payroll. Do the math by comparing the hours/cost of your current system and comparing it to the plans offered by a short list of service providers.
READ MORE>> SmallBusinessAdministration.gov: Five Tips for Outsourcing Your Small Business Payroll Operations