As most tire dealers alreadyrealize, paying their employees involves much more than simply writing a check.Business owners must calculate tax payments, monitor hundreds of state andlocal jurisdictional requirements and keep up with new-hire reporting,quarterly and annual tax returns, direct deposits and W-2 processing.
Due to these complexities,more small companies are choosing to outsource their payroll to professionalswho specialize in these tasks.
Benefits of outsourcingpayroll services include:
• Cost savings: OutsourcingInstitute estimates that companies that outsource experience a cost savings ofat least 9%.
• Time savings: According tothe Small Business Administration, small business owners spend approximately35% to 45% of their time handling personnel-related paperwork. All that takestime away from your core activities – selling tires and managing yourbusiness.
• Reduced liabilities:According to some estimates, small business owners who do not outsource theirpayroll are fined an average of $845 per year by the IRS for inaccurate taxfiling.
• Better service: Improveyour employee recruiting and retention efforts by offering an array of payrolloptions, such as direct deposit. In fact, some payroll outsourcing companiesoffer additional services, such as 401(k) and Section 125 plan administration,workers’ compensation, health insurance and COBRA/HIPPA compliance, to name afew.
Interestingly, smallbusiness owners can also outsource their payroll functions via Web-basedpayroll programs that allow them to submit payroll at any time from anycomputer. Within approximately two days, the Internet-based payroll providerdelivers printed payroll checks.
– Source: Tire ReviewBusiness Toolbox
