In businesses of all sizes, a payroll system can allow business owners or employees to alleviate the multitude of tasks associated with carrying out payroll themselves. From keeping track of hours to withholding taxes, payroll systems handle it all so that businesses can rest assured that everything on their accounting end is being taken care of accurately and efficiently whether they have 10 or 100 employees. Using payroll services can give business owners, particularly small business owners, a way to save money and provide peace of mind.
Taking care of the tax side of things can be something that is frustrating for businesses, as W-4 documents must be kept on file for up to 4 years even after an employee leaves the company, withholdings must be done correctly, and all information for each employee filling out their W-4 must be kept both accurate and up to date. With a payroll system, the tax side of things is taken care of by professionals who know just how to keep track, leaving the worry off of the business owner or their accounting department. Additionally, when funds are withheld from employee paychecks, they are kept in a separate account until they are paid to their proper recipient, whether the recipient is the IRS, Medicare, Social Security, or the state. A payroll system will ensure that this money is held completely separate from all other business income, and cannot be accessed accidentally by the business owner or their employees.
A payroll system can also help to ensure that employers are paying their correct share for employee unemployment taxes, which aren’t withheld from the employee paychecks, but paid by the employer themselves.
When juggling unemployment taxes, withholdings, W-4 documents, and separate accounts, it’s easy to see how business owners can get overwhelmed with the seemingly simple stuff like mailing paychecks out on time and reporting hours correctly. Taking care of payroll as a whole can be an overwhelming process where one small mistake can snowball relatively easily into a large one, and a payroll system helps to ensure that even these small mistakes don’t occur. For businesses large and small, enlisting the help of a payroll system to handle these important financial matters can be a cost and time saving process that gives your business a way to get more done without the worry.