Are you among the 40% of small business owners who say bookkeeping and taxes are the worst bits of being an entrepreneur?
If yes, it’s understandable why you’re struggling with these functions. With thousands of pages in the U.S. tax code, even tax professionals have a hard time staying on top of things.
But as a business owner, you must pay employee dues on time and withhold the necessary taxes. If you don’t, you could face steep fines.
The good news is you don’t have to struggle with the hard stuff. Have you considered outsourcing?
Continue reading for 4 reasons you should outsource payroll.
Keep Your People Happy
Whether you pay your employees on a bi-weekly or monthly basis, nothing gets on their nerves like a delayed paycheck. They have plans, you know!
Yet, this is what’s likely to happen when you handle payroll on your own. If you don’t have time to scrutinize payroll documents, calculate every employee’s wages and bonuses, and write the checks, you will run behind schedule.
The consequence of delayed paychecks is unhappy and disgruntled employees. Their motivation will dip, and so will their productivity. This will hurt your business.
Outsourcing to a payroll service is a sure way to ensure your employees receive their dues bang on time – each time.
Focus on What You Do Best
Most small business owners wear multiple hats, and for good reason. Perhaps you’re running on a shoestring budget and you need to keep costs low.
However, handling multiple crucial business functions can take its toll. Increasingly, you’ll find that you don’t have enough time to do what you do best – which is to develop your product or service.
Outsourcing payroll takes one vital function off your table so you will have more time to be an entrepreneur.
Maintain Legal Compliance
The tax code is always changing, both at the federal and state levels.
Are you always keeping an eye on these changes? Did you know that the Tax Cuts and Jobs Acts which came into force in Dec 2017 affects small businesses in multiple ways?
If you answered no to either question, it’s clear your business is at risk of inadvertently violating the relevant laws. And when that happens, the IRS won’t hesitate to penalize you.
Avoid such mistakes by outsourcing your payroll to a professional service. These pros stay abreast of regulatory changes and will adjust your payroll to ensure the business stays compliant.
Got a Foreign Operation?
Do you have an extension of your business in a foreign country? Thumbs up! Setting an overseas operation is an ideal way to grow your company.
However, it’s one thing to run a business in the U.S., and it’s quite another to run one in another country. The laws could be vastly different.
For instance, let’s say you got a branch down in Sydney, Australia. You have to adhere to the country’s payroll laws.
If you’ve no experience doing business there, you’ll certainly run into challenges. The savvy thing you can do is outsource your payroll to a local service, such as www.payrollserviceaustralia.com.au.
Outsource Payroll and Prosper
How you manage payroll can make or break your small business. Do it well and your business will stay out of legal troubles. Do it poorly and your business will run into all kinds of problems.
What’s more, you don’t have to worry about whether you’re doing it well or poorly. Just outsource payroll and wait to reap all the benefits fleshed out above.
Keep tabs on our business section for more insights.