As a business owner, you may not have all the time it takes to focus on the details of payroll processing. Many employers choose to outsource payroll because they’re not experts on calculating overtime, paying employees who work across multiple states, or checking to make sure payroll taxes are paid and reported on time.
When you outsource payroll to a payroll company or PEO, it frees up your time to focus on the other responsibilities that come with running a business. Here are four ways a payroll company or PEO can save you time and money.
Accurate Payroll Processing
Payroll mistakes are some of the most common errors employers make. For example, classifying employees incorrectly, as exempt or non-exempt, creates an opportunity for further inaccuracies. Other payroll examples where frequent errors occur include calculating overtime pay, holiday pay regulations, job costing, certified payrolls and handling payrolls with employees in multiple states.
Tax Code Compliance
Business owners may not be aware of tax codes, especially if they operate in more than one state. Payroll experts remain up-to-date on tax code changes and can easily correct errors. With a typical stand-alone payroll company, there may be software to help you create your tax reports, but you’re still responsible for filing those reports and paying your taxes. However, a PEO handles tax reporting and filing on your behalf and even assumes the responsibility for accuracy.
Tax Management Services with a PEO typically include:
- W-2 processing
- 940 and 941 filings including federal withholding
- W-3 processing
- State withholding
- State unemployment
- Local taxes
- Unemployment claims handling
- Tax credit reports available
The penalties associated with wage and hour or tax violations add up quickly and put your business at risk for legal action.
Over time, outsourcing payroll could be more affordable than doing things yourself with a payroll software or hiring someone to coordinate payroll in-house, especially if other services are bundled with it. When it comes to choosing between a payroll company and PEO, make sure you inquire about any added services fees up front so you can compare apples to apples.
More Time for What Matters
PEOs like FrankCrum handle other payroll-associated tasks as well, like wage garnishments, which saves you time and eliminates some potentially awkward moments with your employees. When you’re not up to your elbows in payroll or other HR administration, you’ll have more time to focus on what matters, business performance and growth.
For more information on FrankCrum’s payroll services, call 1-800-277-1620 ext. 4.