Payroll Processing Services

Consider using an outside vendor for payroll and payroll tax reporting to offer competitive benefits and mitigate error-related risks.

Payroll Processing Services

Now, even small businesses can get payroll processing services, including payroll taxes, benefits including 401K retirement services from an outside payroll service vendor at affordable prices.


There are two primary reasons that even small businesses elect to use an outsider service for managing payroll and benefits. Let’s talk about payroll first. The complexities of processing payroll are significant even for a company with fewer than 5 employees.   There are federal taxes to be withheld, state taxes, in some cases city taxes too.  Then there is social security, also know as FICA, which is a shared tax split between the employee and the employer. Once the taxes are withheld from the employee’s check the amounts need to be reported to the proper agency and deposited.  Beware: The paperwork and penalties for getting it wrong will take away from the important matters of growing your business.  

For these reasons alone, SmallBusinessPlans recommends that any business with payroll (even if the owner is the only person on the payroll) strongly consider using an outside vendor to process their payroll and payroll tax reporting.

The other reason is more focused on benefits.  Very small companies have two issues with offering competitive benefits. First, by virtue of their number of employees, many won’t qualify for popular types of benefits offered directly.  Secondly, the administrative work to manage these benefits for a small number of employees is very high.  Several benefits vendors bundle small companies together to offer a flexible benefits package to even the smallest companies.  You’ll save time and make ‘big company’ benefits available to your small company employees.

 

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