As a small business owner in Denver, you might be averse to spending money on what you perceive as non-essential expenses like outsourcing payroll. Today, True Resolve sheds some light on how hiring professionals to manage this task can actually save you money. In fact, according to the IRS, nearly 40% of small businesses pay penalties averaging $845 per year for filing late or incorrect income and payroll taxes. Hiring a payroll service can help you avoid IRS issues and keep more money in your pocket.
Still on the fence? Let’s take a closer look at even more great reasons for outsourcing payroll.
1. Increase Productivity – Whether you or an employee manages payroll, ask yourself:
- How much time does it take each pay period to calculate payroll, prepare and distribute checks, keep up on changes in taxes and laws, generate reports, make all employee-requested changes, and add/remove employees from the system?
- Could you or your employee be focused on something more productive, that contributes to the bottom line and growth of your company? How much time is being diverted away from the core business and applied to a repetitive, yet critical task?
2. Avoid Costly Tax Mistakes – Filing payroll taxes late, incorrectly or incompletely can lead to business IRS problems. The truth is, the system is complicated and federal tax rules are constantly changing. So, unless you’re paying attention and continuously keeping up with the latest in IRS and even state codes, you can quickly find yourself in hot water. And once you raise a red flag with the IRS, just one small payroll tax mistake could escalate into penalties, aggressive collections, even an audit of your Denver business. By outsourcing payroll to an experienced team that keeps current on the latest tax rules and focuses solely on your payroll matters, you’ll always be in compliance.
3. Secure Your Private Data – If your small business doesn’t have a payroll department, you probably don’t have an IT department either. So, if you’re running payroll using your basic business WiFi and storing sensitive employee (and customer) data on a local network, you’re leaving everyone exposed to security breaches and potential identity theft.
Beyond technology issues, having one of your employees handle payroll presents more potential for risk. At True Resolve, we’ve actually worked with a number of Denver businesses that came to us after a supposedly trustworthy employee embezzled funds or otherwise tinkered with the system for their own personal gain. Remember, this person may also have access to all kinds of information, from what everyone is being paid to social security numbers and even performance reviews if all of your HR and payroll data is housed in the same spot.
Bottom line, if you’re not currently outsourcing payroll, you’re leaving your business vulnerable while wasting valuable time on a task that isn’t growing your business. With the help of the True Resolve Tax Professionals in Denver, you can trust our experienced team to provide you with the accurate and secure management of all payroll matters, including filing your payroll taxes properly and on time. We’ll even generate reports to help you determine if revenue and payroll are aligned for business growth.
If you’d like to learn more, about how True Resolve can help you with payroll and much more, please feel free to schedule your complimentary consultation.