Do you manage the payroll in your business in-house? Your Upper Valley Business Payroll just might be costing you more than you realize. There are hidden costs from employee productivity to IRS penalties that eat away at your profitability. Here are some tips to save you time and money and massive headaches on your Upper Valley Business Payroll.
1 Save Money On Labor
The average small and medium business owner spends over two hundred hours a year on payroll in-house. When you consider the massive amount of time that goes into managing payroll, internally it’s easy to see how it all adds up. Here are the factors in managing your own payroll:
- Calculating employee hours
- Payroll deductions
- Paid time off
- Taxes
- Printing checks
- Signing checks
- Distributing checks
- Processing direct deposits
- Generating reports
- Allocating funds for retirement & child-support
- Prepping payroll taxes
All of these factors add up fast and will increase as you add more employees to your company. Thus ever increasing the need for more staff to handle payroll internally.
2 Government Compliance
As an employer in the Upper Valley region of Vermont and New Hampshire, you’re responsible for monitoring changes in payroll laws. These regulations are constantly changing on a local, state and federal level. The (ACA) Affordable Care Act and wage and hourly laws are changing on a regular basis making it difficult for you to keep up.
Currently, there are more than 15,000 tax codes in the United States and every day there is a new tax code introduced. Do your employees have the time to research this continuously? If not, you could face penalties for filing incorrect returns.
Now that we have painted a precarious picture, there is good news. Payroll companies like us (Check-Write Payroll) are experts and keep up to date with ever-changing regulations. We guarantee accuracy and compliance, and if there is a mistake, we are there to correct it quickly and efficiently.
3 Employee Retention
Payroll errors don’t just cost you profitability; they also cost you, employees. In 2015 a study from the UK found that more than 1/3 of employees left their jobs because of payroll errors. When there are errors in payroll, employees tell other employees are affecting whether they will stay employed there or not. This will also affect potential new hires as they research your company culture on Glassdoor.com.
4 Payroll Security
Processing your payroll in-house can be one of the biggest challenges. Paper records have to be stored for 3-5 years in most states. You will need massive amounts of filing cabinets to store all the documents. Servers will require high-tech security for employees and data to protect their sensitive data from theft etc..
When you outsource your payroll, you don’t have to worry about most of these issues. We handle everything for you and ensure your payroll information is safe, secure and easily accessible.
5 Everyday Operations
Payroll is just one of the many responsibilities that affect you, your employees and your companies profitability. Look for a payroll partner in the Upper Valley that can support your growing business with value added services. At Check-Write Payroll & Bookkeeping we work with you on your bookkeeping, payroll and with employee background checks. Give us a call to learn how we can help you with your payroll.