If you run a business, you know how stressful and complex business management can be. From the moment a business begins to hire its first employees, that complexity can quickly scale exponentially. Businesses must navigate numerous aspects of employee management to ensure smooth business operations and avoid legal troubles.
One of the most crucial aspects of employee management is payroll management. Failure to establish and maintain payroll procedures can not only threaten the livelihood of your employees, but this shortcoming can leave your business open to legal trouble as well. Fortunately, businesses that lack payroll management experience or that want to make payroll management more convenient can outsource their payroll management to a team of experienced payroll accountants. These managed payroll services can take payroll responsibilities out of your company's hands and prevent these legal concerns before they happen. In particular, here are two ways that managed payroll services can protect your business from legal trouble.
Managed Payroll Services Can Enhance Payroll Compliance
When it comes to managing payroll, there are many surprises that businesses face. One frequent surprise is just how big of a role tax compliance plays in payroll management.
The introduction of employees to a company's ecosystem creates multiple layers of tax obligation. Businesses must pay employees while calculating and ensuring that the correct amount of federal, state, and local taxes are withheld from employee paychecks. These payroll tax calculations must be submitted quarterly. Also, a year-end company income tax return must be submitted to the IRS with payroll figures included as deductions.
With payroll tax laws constantly changing, juggling these requirements can be difficult, and it can be easy for a business to fall out of legal compliance. Fortunately, managed payroll service professionals stay up to date on the latest tax and payroll laws, ensuring maximum compliance.
Managed Payroll Services Can Enhance Payroll Accuracy
With the many aspects of business record-keeping, payroll and tax document submissions, and changing tax laws, it can be easy to make a mistake somewhere in the employee payroll management process. Unfortunately, if you do make a mistake and get any of your payroll numbers wrong, it can lead to big trouble with the IRS. Managed payroll service professionals have the knowledge and experience to spot potential mistakes, evaluate unique tax situations, ensure timely and accurate employee payment, and decrease the likelihood of your company receiving an undesirable letter from the IRS.
Conclusion
Payroll management can be stressful, costly, and risky. While it may be tempting to handle your payroll management in-house, hiring managed payroll services is a great way to keep your company safe from the risk of payroll mismanagement and legal compliance issues.
To learn more, contact a payroll company like HolyOak & Co.
Share29 October 2021
Accounting is the absolute most important element of running a business. If you mess up the bookkeeping even the slightest bit, the entire business could be in trouble. I know how costly a small bookkeeping error can be. About three years ago, I made a seemingly small mistake in the financial records for my business and the next year when I filed my taxes, things were very bad for me. What would have required a small tax payment had suddenly turned into a big tax bill and quite a headache. Since then, I have worked with an accountant and things have been better.