Payroll… It’s Not Just About Paying Yourself!

This article, originally published in an issue of the Rhode Island Small Business Journal, goes into detail on why setting up your payroll systems is one of the best, and most important, things a new business can do. We are honored to have this piece accepted and look forward to publishing more to help our customers and the local community build their own businesses!

“When a company falls behind in paying payroll taxes, workers’ compensation insurance, or jurisdiction selection, there is often a snowball effect. The resulting paperwork, penalties and fees is enough to bury many small business owners. We find that over 50% of our new payroll business isn’t driven by price, but by the fact that companies have been trying to do payroll internally for months, or even years. The first time they receive a late payroll tax reminder, they don’t think much of it because they get a pass, but the second and third time, the penalties start adding up. Any savings on carrying costs, or avoiding a service provider, is wiped out by penalties and regulatory audits.

For small businesses, a payroll service provider may seem expensive, so owners often try to save money by figuring it out internally. They do payroll on their own, or calculate payroll in their accounting software, and then pay themselves and their employees. All too often, these companies cut the paychecks, but forget to pay the taxes, even though they may have been calculated correctly!

Even if the payroll taxes were properly calculated and paid, a business owner cannot forget about workers’ compensation insurance, or federal and state regulatory filings. Accounting and bookkeeping professionals know that outsourcing payroll can be one of the greatest returns on investment for small business owners, and is an efficient step in growing and focusing on your business.

With new small business clients, we see a range of challenges they face regarding payroll processing. These five tend to be the most common challenges…”

Read the rest of the article here!