Are Payroll Services Worth the Expense?

Payroll processing is an unavoidable part of managing a workforce. Whether you have a small or large company, it is essential to have the paychecks ready to go on payday. Even though it might seem simple to hand out these checks to employees, there is a lot of work that goes into payroll processing. So, you might consider the benefits of hiring a team to help with payroll services.

How Much Should You Pay for Payroll Services?

The monthly cost for these services will vary depending on the size of your company and the complexity of the payroll system. It’s hard to put a set price on payroll processing without understanding the specific needs of your business. So, the best thing that you can do is talk to a payroll processing team, like Easier Accounting, to learn about the services that will suit the needs of your company.

Even though outsourced payroll services might seem expensive, these costs are typically cheaper than the prices that would be paid for an employee to manage the tasks. When you are paying an employee to handle payroll processing, you need to cover their salary as well as the overhead expenses for office space, benefits, and more. The costs can add up!

Instead of jumping to the conclusion that you need another employee to handle payroll processing, consider the benefits of using an outsourced team. These payroll services can be catered to match the needs of your company. You can rest assured to know that you will receive top-notch services at affordable prices.

What is Covered By a Payroll Processing Company?

When you choose payroll processing for your small business, the payroll company handles more than just printing the checks. Generally, this company should oversee all of the behind-the-scenes details that affect the payment calculations, taxes and more.

These are the most common offerings in payroll services:

  • Schedule: It is important that the schedules are managed so that employees always have a paycheck in hand on the right day. Missing the scheduled payroll can have horrible consequences on employee morale and company culture. Your employees come to work each day trusting that they will receive a paycheck on the right day of the month. Any delays with payroll availability will result in a domino effect that has a negative impact on the productivity of the workforce.
  • Pay Calculations: Did you know that there are different payment rates that need to be provided based on the number of hours that are worked by an employee? Not only do you need to know the person’s wage and the hours that are logged each week, but you also need to be aware of the adjustments that are required for time and a half, double pay, holiday pay. There are federal and state laws that manage these payments. Your payroll service will help you stay ahead of the legal requirements for your workforce.
  • Benefits Deductions: Most companies have calculations for benefits deductions and human resources services. For example, if health insurance is provided as a benefit and the employee needs to pay for the monthly premium, then that amount will need to be deducted from their check. Additionally, the money that is deducted, along with the employer contribution, needs to be sent to the insurance company to ensure uninterrupted insurance coverage.
  • Tax Administration: Taxes also need to be calculated for every paycheck. It is important that you keep up with any tax rate changes each year. There are several categories of employment and unemployment taxes that need to be deducted, and your payroll service can help you stay current with these rates.
  • Federal and State Laws: With the tax calculations, it is essential that both federal and state laws are factored into the withholdings. An experienced financial company will help you identify the laws that need to be managed for your business location.
  • Tax Paperwork and Filing: In addition to the withholdings for taxes, there are other forms and paperwork that need to be filled out and filed. For example, employment taxes need to be paid on a regular basis, and this schedule changes based on the size of your company. Employees also need to receive their W2 forms by January 31st each year.
  • Other Deductions: Sometimes there are additional deductions that need to be calculated for individual circumstances. Garnishments might be required and shouldn’t be overlooked if you have received a garnishment request for an employee.
  • Checks and Deposits: The final part of payroll processing is printing the checks and issuing direct deposit transfers as needed. This step is the time when employees receive the money that they worked so hard for. Your payroll processing service will take care of these details so that you don’t have to worry about the bank transfers or paperwork.

As you can see, there is a lot of information that needs to be addressed before the paychecks are cut. It is important that you have an experienced team to help with the process. Creating a good system will improve accuracy and help you avoid fines and fees for improper payroll calculation. If you need assistance, then you can talk to our team at Easier Accounting for more information about the services that we provide.

Financial Consequences of Skipping Payroll Services

As mentioned above, outsourced payroll processing is often cheaper compared to hiring an employee to manage these tasks. But, did you know that there are other potential financial issues that you might be facing if you don’t have a good payroll processing company?

One of the biggest concerns is the potential for fees or fines based on improper payroll calculations. You are required by law to provide accurate payments to employees based on their agreed wages and the number of hours that are worked. Failing to abide by these legal requirements could result in harsh consequences for your company.

Hiring a payroll processing service is one of the best things that you can do to avoid these potential issues. Our company will evaluate your situation and offer recommendations based on the services that suit the needs of your workforce. We ensure that everything will be handled with the highest level of care and support that is needed.

Free Up Your Time for Other Business Responsibilities

Another benefit of outsourced payroll services is that you don’t need to waste your valuable time on busy work. Even if you have the knowledge and ability to manage payroll processing, there is an opportunity cost to the hours that are spent on the work. Just because you are capable of handling the work, doesn’t mean that you need to manage the task by yourself. You are probably capable of scrubbing a toilet, but you choose to hire a custodial staff to help instead. In the same way, you might be capable of calculating payroll, but you should let an accounting team handle the work.

Freeing up your time is one of the best things that you can do to ensure the future success of your company. You shouldn’t get caught in the busy work that distracts you from other important tasks that need to be addressed for your company. When you outsource tasks like bookkeeping and payroll processing, then you can focus your time on more important things like business development, customer satisfaction, product ordering, employee management and more.

These other responsibilities make up the foundation of your company. You need to use your time wisely by making sure that you are spending your days on the services that will be best for the needs of your company.

Choosing a Payroll Processing Company

Now that you can see the benefits of payroll services, it is time to choose a payroll processing company. Don’t limit yourself to local providers when there are so many great resources available online. The internet has made the business world smaller, giving you access to professionals located in any part of the country.

The best thing that you can do is choose a company that offers personalized services. There is no reason for you to stick with generic payroll processing when there are quality services that can be catered to the needs of your company. You can work with an experienced team to identify the right system that will be good for your workforce.

If you need payroll processing services, then you can contact our team to learn more about the customized services that we provide. Not only are we here to help with your payroll processing, but we also offer the support that you need for bookkeeping, tax administration, tax filing, and more. You are invited to contact us any time when you are ready for more information.

At Easier Accounting, we specialize in payroll and bookkeeping services for small businesses. Our company has many years of experience in the industry, offering the best solutions for business owners and entrepreneurs. You might be surprised to see how much of a difference it can make when you choose to hire an experienced payroll and accounting team. Call today for custom recommendations that match the needs of your company: (888) 620-0770

Why Payroll is One of the First Things You Should Outsource

The quality of your staff is the foundation of a successful business. If you have skilled employees and contractors, then you can rest assured to know that things will get done and the business will keep moving forward. On the other hand, unmotivated employees can quickly bring down a company because of the poor customer service that is reflected.

As an employer, you need to be sure that you are proactively working to improve company culture. Happy employees will treat your customers right, helping you to increase sales and productivity. Payroll is an important aspect of employee satisfaction because your team needs to know that they will receive a correct paycheck in a timely manner. When payroll problems happen, it starts a domino effect that negatively impacts attitude and culture in your business.

Mistakes of Do-It-Yourself Payroll

If you are just getting started with your small business, then it makes sense that you are carrying many responsibilities. It is common for small business owners to carry the bulk of the responsibility, instead of handing some of these things off to employees and contractors. Not only are you looking for ways to cut overhead costs, but you also want to maintain control over the business.

Even though it might seem like a simple solution to handle the payroll by yourself, be aware that you could be causing potential problems for your company. Too often, small business owners don’t have the experience or knowledge to manage the business financial details. As a result, things slip through the cracks and mistakes are made.

Compare the costs of hiring a payroll service to help with your company, and you will see that it is cheaper to pay for this monthly service instead of dealing with the aftermath of a failing business because of payroll mistakes. These mistakes could cost thousands of dollars in employee turnover, back taxes, IRS fines, and more.

Is Payroll Software a Good Idea?

Using a reputable software program is a great place to start, but the software won’t overcome the human mistakes. The computer is only as good as the information that is entered into the software. So, you need to be sure that you are using accurate information when setting up the payroll details for your employees.

Depending on the software without using regular checks and balances could cause a domino effect of problems in the future. So, it is important that you have an experienced accounting and bookkeeping team in place to stay ahead of the details. The combination of the right software program and a knowledgeable team will set your company up for success.

Accounting Employee or Outsourced Payroll Services?

Now that you see the importance of hiring an experienced financial professional to help with payroll, the next step is to compare the options of an in-house employee or an outsourced payroll service. When you look at the numbers, it is easy to see why many small business owners turn to outsourced services to solve this problem.

If you hire an employee to manage payroll, you will need to pay their salary with extra costs on top for benefits. These benefits can cost thousands of dollars per year for health insurance, life insurance, paid time off, and more. Plus, you have the employee taxes and worker’s compensation fees calculated based on the amount that is paid to each employee.

Not only do you need to cover these taxes and benefits for an employee, but you also need to carry the cost burden of paying for office space to accommodate that employee. Other expenses might include office furniture, computer equipment, and office supplies that are needed so that they can do their job.

There is no doubt that it can be expensive to hire an employee. So, many small business owners are looking at options to bring on contractors for support instead. These outsourced payroll services offer all of the expertise that you need, without the burden of having an employee in your office. You get the best of both worlds: you can save money and have reliable, accurate payroll processing at the same time.

Benefits of Outsourcing Your Payroll Processing

Are you considering the option to outsource your payroll? Here are a few benefits that you can expect if you choose to invest in this service:

  • Save Time: There is no reason for you to spend your limited time on payroll processing. As a business owner, your time is better spent on employee management and company growth. Let someone else handle the busy work for payroll processing. Outsourcing these tasks will free up your time so that you can focus on more important responsibilities for the company.
  • Boost Productivity: How often do you feel like your day is taken up with busy work and seemingly mundane tasks? As the owner of the company, it can be hard to maintain productivity if you are constantly interrupted throughout the day. Plus, your productivity will go down if you are wasting your time on busy work. Outsource this busy work so that you can improve your productivity each day and maximize your results.
  • Decrease Expenses: As mentioned above, there are many costs associated with bringing another employee into your company. By working with a payroll provider, you can reduce the direct costs of payroll processing. Even if you have a large company that can support the salary of an in-house accountant, you still might consider the benefits of outsourced payroll services to minimize costs.
  • Avoid IRS Penalties: If tax filings and paperwork are turned in late, then the IRS will charge expensive fees and interest costs. Your risk of these fees will go up if you are handling the payroll without the support of an experienced accounting team. Small business owners often make mistakes, which can result in costly problems in the future.
  • Financial Security: Is your bank account and employee information secure in your office? Payroll processing can be risky if you aren’t using the right security features to protect the information. There are many security threats that you can run into in the digital age in which we live. So, it is a good idea to hire a company who will go above and beyond to protect your financial security.
  • Keep Employees Happy: One of the fastest ways to make an employee upset is by making a mistake on their paycheck. Reliable, accurate paychecks are the foundation of employee satisfaction. So, you need to make sure that you have a payroll team that will ensure accuracy for every pay period.
  • Expert Financial Advice: Hire the right payroll processing team, and you will have expert financial advice throughout the year. These accounting services can be much more than just writing the paychecks! The right accounting service will offer services for tax filing and management, as well as all other types of business financial support that you need. Take advantage of this expertise to help your company grow.
  • Regular Reconciliations: There are many benefits to having an outside party handle the reconciliations for your payroll and business transactions. These checks and balances will decrease the possibility of fraud or theft within the company. Instead of leaving this responsibility with an in-house employee, bring in an outsourced expert who can look for potential signs of employee fraud.
  • Current Expertise: Payroll services make it their job to stay ahead of the changes in the industry. If the IRS makes adjustments to tax rates, then you can rest assured to know that your company will stay up-to-date with these changes. You don’t have time to study the industry and keep up with these changes by yourself. Instead, bring in an outsourced service which is entrenched in the industry and retains current knowledge for mandates on the federal, state, and local levels.
  • Lower Stress Levels: How much do you stress every time you need to calculate payroll for your employees? This task can increase your stress levels and make it hard for you to relax during your free time. Instead of burdening yourself with high stress levels, outsource the work so that you can sit back and relax while the experts handle the details.

Hiring an outsourced payroll team is one of the best things that you can do for your company! Not only will you free up your time, but you can also have the peace of mind to know that you are missing some of the mistakes that are commonly made by small businesses.

It is important that you build the right team to support the future success of your company. If you are looking for ways to improve your financial systems, then you need to talk to us to learn more about the services that are available.

At Easier Accounting, we specialize in all types of business financial services, including payroll processing and tax filing. We invite you to call to schedule a consultation to learn more about the ways that we can support your small business. We are here to help with anything that you need! (888) 620-0770

Questions to Ask Before Hiring a Payroll Service

Whether you have two employees or two hundred employees, it is important to have a solid payroll system to ensure timely payments to your staff. Many business owners agree that it can be a burden to keep up with payroll processing, but it is a necessary part of owning a business.

If you are overwhelmed with keeping up with your business payroll, then you might consider the benefits of hiring a bookkeeping or accounting service to assist. Outsourcing these tasks can relieve your stress and help you focus on the other essential tasks that need to be addressed.

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Hire an Employee or Outsource Payroll?

Hiring an in-house bookkeeper or accountant might be a good solution if you need support with payroll processing. But, you need to look at the overall costs of hiring an employee to see if it is worth the cost. Not only will you need to pay their salary, but there are other expenses such as benefits, office space, training, onboarding, and more. It is essential that you look at all of these hidden costs before deciding to bring another employee into your company.

An easy way to skip these extra costs is by hiring an outsourced payroll service. This solution allows you to hand off the burden of processing payroll, while still keeping your costs low. Payroll outsourcing is one of the best ways that you can free up your schedule and improve your business financial systems at the same time.

Automating Your Payroll Processing

Payroll processing is not only time-consuming, but it can also be costly to keep up with everything. When it is time to cut the paychecks, it is much more than just calculating the number of hours worked by each employee. Not only do you need to calculate the gross payment, but you also need to keep up with the current payroll taxes and withholdings. Then, these payments need to be sent to the government along with the appropriate reporting forms.

Additionally, there are quarterly and annual taxes that need to be considered, as well as the management of benefits withholdings and more. It can be a full-time job to keep up with the financial details for your payroll system!

As a business owner, there is no reason for you to spend your valuable time on this busy work. Hiring a payroll outsourcing team can allow you to transition to a full-service, cloud-based system that frees up your time to focus on other aspects of business management. You can sleep easy at night knowing that payroll is done and you don’t have to worry about the data entry and tedious work.

Instead of viewing payroll services as a “luxury,” it is time to switch your thinking and see that a reliable payroll management service could save your company thousands of dollars.

Questions to Ask Your Payroll Provider

When you make the decision to hire a payroll provider, you need to ask a few questions to ensure that the services match the needs of your company. Here are a few questions that can help you choose a provider for your needs:

  • What services are included in my accounting package? Most accountants will offer a specific scope of services included in a monthly plan. The best solution is to find an accounting team that will handle the payroll processing and the tax preparation as well. These two services go hand-in-hand, so it makes sense to hire someone to help with both. Payroll processing should include tasks such as payroll tax calculations, automated new hire reporting, deductions for benefits, tracking paid time off, and as-needed adjustments for reimbursements, bonuses, commissions, garnishments, and more.
  • How will the employee payments be sent? Make sure that direct deposit is available, as well as a check option if needed. Most employees prefer direct deposit, although some people want to pick up a printed check.
  • Is it a cloud-based system? Even though you are hiring an accounting team to manage the responsibility for payroll processing, you still need the option to see the reports and transaction details. A cloud-based system will give you access to oversee the details. But, make sure that the system uses the latest encryption technology to ensure the safety of the information. Also, the account information should be secured with firewalls and two-step authentication.
  • How much will I pay per month? Factor in costs for the cloud-based software as well as the accounting services. Make sure that you understand the payment breakdown based on the size of your company. Some accounting services charge a flat fee for the entire company, while others charge a fee for each employee. Compare these costs to the expenses of hiring a full-time accountant, and you will see that it is more affordable to outsource payroll processing.
  • How do I get started? Find out the best way to setup the system and start moving forward. During your initial conversation, you should discuss your current payroll system to find the best way to make the transition to the new system. An experienced accounting team will be able to offer the support that you need to make it as easy as possible.
  • Will all payroll taxes be handled? The simplest solution for payroll outsourcing is to hire a full-service accounting team. Make sure that the payroll service will include required forms such as W-2’s and 1099’s at the beginning of each year. Also, ask about practices that are in place to manage compliance for federal and state taxes, including payments and forms that need to be submitted throughout the year.
  • Can I see what the check stub will look like? Asking for an example of the check stub will allow you to see what your employees will receive. Make sure that the important details are included, such as deductions, taxes, paid time off, and more.
  • What is the policy for payroll changes? The hope is that all applicable information will be updated in the system before payroll is processed. But, you need to understand the policy if changes need to be made. If mistakes occur on an employee timecard, will you be able to update the system before the checks are cut? Be clear on the timeline to ensure that all employees and managers met these deadlines for each payroll cycle.
  • What are the customer support services that are offered? If you have a question about payroll or tax payments, then you deserve to have an experienced accounting team to answer your questions. Ask the payroll provider about customer service and preferred methods of communication. It is essential that you always have a reliable point of contact to call if you need help with anything for your business finances.
  • How much experience do you have in the industry? Research the accounting company to learn more about the experience of the team. Not only do you want to be sure that the company is reputable, but you should also consider the applicable experience in the payroll industry. Find an accounting team that has experience working with other companies that are similar to your business. This hands-on experience is essential to ensure that you are getting the best services that are available.

Most accounting teams will offer an initial consultation so that you can see if their services are a good fit for what you need. This consultation is a great opportunity to ask these questions so that you can learn more about the company and make sure that you are hiring the right team.

Getting Started with a Payroll Service

You will be amazed to see the many benefits that are available when you choose to outsource your payroll processing. This service is one of the best ways that you can optimize your business finances, free up your time, and improve the accuracy of the paychecks that are being distributed.

High-quality payroll processing helps to avoid costly mistakes that could add up every month. For example, if you miscalculate payroll taxes or deductions, then it could be costing your company thousands of dollars. The investment in a payroll service can ensure that you aren’t missing these important details that could be costing you money.

As a business owner, there is no reason that you should be carrying the responsibility of payroll processing. Right now is a great opportunity to outsource this task so that you can spend more time on business development and other management activities.

Are you ready to learn more about how your company will benefit from payroll processing and other accounting services? Then, you need to schedule an appointment with us at Easier Accounting. We want to make it as easy as possible to improve your business finances. So, we will gladly discuss your situation and find the right services to meet your needs.

If you have any questions or you are interested in learning more, we encourage you to call us for a consultation. We are here to help with anything that you need! Contact Easier Accounting for the best small business payroll processing service available: (888) 620-0770

Do You Need a Bookkeeper to Help with Payroll Processing?

Payroll processing can be a time-consuming task, and some business owners have a hard time keeping up with everything that needs to be done. It is essential that you are consistent and accurate with payroll, because paycheck distribution will have a direct impact on employee satisfaction.

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Do-It-Yourself Payroll

Some companies choose to handle payroll in-house, but it is essential that you have a solid system and the right team to help with the paychecks. Missing hours, late paychecks, or any other errors might cause employees to be frustrated with their work. These problems can lead to higher turnover, which can be damaging to your company.

If you are handling payroll on your own, then you might consider the benefits of hiring a payroll service to help instead. In fact, many business owners find that they can actually save money by using a payroll service instead of paying a high salary for an in-house bookkeeper or accountant.

Payroll Service Benefits

When you hire a bookkeeper or payroll service to help with payroll processing, you will see that there are a number of benefits that you will be able to enjoy. Outsourcing these tasks helps to increase the accuracy of the payroll distribution, especially if you are working with a trusted company with a lot of experience in bookkeeping and payroll processing.

Additionally, you will see that hiring a bookkeeper to help will be beneficial to free up your time in the office. Instead of worrying about the details of payroll calculations and distributions, you can focus on the other things that need to be done. Business owners have a lot of responsibilities, which is why it is best to outsource the busy work to the professionals instead.

When you hire a payroll service or small business bookkeeper to help with payroll processing and calculations, your stress levels will drop. Financial professionals can keep the business running by managing payroll, invoicing, and other financial services. So, you can focus on building the business and expanding for future growth.

At Easier Accounting, we are here to help with any type of bookkeeping or financial assistance that you need for your small business. We invite you to contact our experienced team today to learn more about the services that are available. We will talk with you about your goals, and put together a plan that will work best for your needs. Call us right away for more information: (888) 620-0770