Benefits of using outsourced payroll services
Posted on August 19th, 2014 Read time: 1 minutes
Managing payroll is much more than ensuring that workers are paid on time. There are a number of other tasks associated with this critical business function, the most important of which is submitting timely and accurate reports to the Internal Revenue Service.
According to Article Bay, citing information from Businessweek, not sticking to payroll reporting deadlines outlined by the IRS can result in severe financial penalties being levied against a company. The website reported that as much as 40 percent of small-business owners are required to pay additional fees to the IRS for filing both late and inaccurate payroll reports.
It is for this reason that payroll outsourcing services are becoming increasingly valuable in the business sector. These organizations can help businesses of any size focus more attention on day-to-day operations while ensuring that staff payroll will be processed in a timely manner. This action will also help maintain compliance with the IRS' reporting guidelines.
Real Business listed other benefits for companies to use outsourced payrolling services, including those making the decision to move from a salary-based compensation structure to one that is driven by commission. The meticulous nature of this kind of payroll structure can put a strain on companies ill-equipped to manage this unique business model with respect to properly compensating workers for their efforts.
These are just some of the benefits offered to small and medium-sized business considering allowing a third-party to manage its payroll needs. This service eliminates the need for decision-makers to be knowledgeable in the areas of state and federal tax regulations, while also minimizing the stress of ensuring that workers are paid on time. These considerations and others should help a company that is on the fence about outsourcing its payroll processes.
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Posted on August 19th, 2014 Read time: 1 minutes
Managing payroll is much more than ensuring that workers are paid on time. There are a number of other tasks associated with this critical business function, the most important of which is submitting timely and accurate reports to the Internal Revenue Service.
According to Article Bay, citing information from Businessweek, not sticking to payroll reporting deadlines outlined by the IRS can result in severe financial penalties being levied against a company. The website reported that as much as 40 percent of small-business owners are required to pay additional fees to the IRS for filing both late and inaccurate payroll reports.
It is for this reason that payroll outsourcing services are becoming increasingly valuable in the business sector. These organizations can help businesses of any size focus more attention on day-to-day operations while ensuring that staff payroll will be processed in a timely manner. This action will also help maintain compliance with the IRS' reporting guidelines.
Real Business listed other benefits for companies to use outsourced payrolling services, including those making the decision to move from a salary-based compensation structure to one that is driven by commission. The meticulous nature of this kind of payroll structure can put a strain on companies ill-equipped to manage this unique business model with respect to properly compensating workers for their efforts.
These are just some of the benefits offered to small and medium-sized business considering allowing a third-party to manage its payroll needs. This service eliminates the need for decision-makers to be knowledgeable in the areas of state and federal tax regulations, while also minimizing the stress of ensuring that workers are paid on time. These considerations and others should help a company that is on the fence about outsourcing its payroll processes.
