Most likely, you had one or two employees in the beginning.
You started out doing your own payroll, in spite of the hassle, because it seemed like the right thing to do when you only had one or two paychecks to cut.
In the back of your mind, though, were nagging potential liabilities: labor rules, tax laws, government requirements. Were you compliant with them all?
Then your business grew and more employees were added.
Payroll was still a lot of work but it made sense for you to keep doing it rather than pay an outsourced provider.
Then all the nagging liabilities swirled before you and your stomach dropped because you received a notice from the IRS about underpaid payroll taxes.
Perhaps you should have been paying someone else to do payroll all along.
How do you know when it’s right for your business to outsource payroll to someone like Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc.?
There are many factors to consider, some as simple as how much time you spend doing it and whether or not you enjoy it.
Do you frequently make payroll changes? Do you have variable hour employees or frequently add new employees (part-time or temp workers, for example)? Then perhaps you should consider hiring a professional to minimize the potential for errors and free up your time for other things.
Do you have employees in other states? Tax and labor laws vary by state, sometimes even by county within a state. It can be a full-time job to keep track of all that. Leave it to the professionals and reduce your risk of inadvertently under (or over) paying taxes or being non-compliant with labor laws. Your time would be better invested in growing your business.
Do you have at least 50 full-time employees? The Affordable Care Act or ACA, also known as Obamacare, kicks in at 50 full-time employees and requires additional time-consuming reporting. Let the professionals do the calculations and submit it as required. There are other ways you can spend your time.
If you’re ready to switch to an outsourced payroll provider, then Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. recommends that you do it at the start of your fiscal year.
All payroll providers, from our preferred Intuit QuickBooks Payroll to ADP, Paychex, and others, have their own on-boarding procedures that start with collecting basic company information and employees’ demographics.
The next step should be a test run so you can validate payroll data and approve the next pay date as your first official payday with the new vendor.
It’s normal to experience a few bumps along the way.
In the beginning, it’s important to validate all payroll data for yourself each run, make sure every employee’s withholdings are correct and that your estimated tax payments are right. Eventually, it will run like clockwork.
Imagine not having to track tax payments or withholdings, process year-end documentation, and report wages to the IRS anymore; the new vendor will do it on your behalf!
Some payroll vendors even offer extra services such as online benefits enrollment for employee benefits self-service.
Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. is here to discuss your current payroll pains and wishes.
We can help you decide on the best solutions, and perhaps outsourced providers, for your business.