As a business owner, you’re already well aware of the many things that you have to do in order to make your company a success. You have to offer a great product or service. You have to hire employees who are friendly and knowledgeable. You have to do some amazing branding. You have to come up with a great marketing plan as well.
And when it comes to retaining the kind of staff who is willing to assist you in all of these areas, something else that you must do is make sure that payroll is well taken care. So, how can you make payroll a smooth process and still keep a few extra dollars in your pocket? That’s a really good question. This article is going to share with you five proven ways that business owners can actually save money when it comes to payroll processing.
Verify your data. One of the costliest mistakes that business owners make is failing to verify their employee demographic data. It is essential that you have all of the W-2 and 1099 forms that you need and that the information on them is 100 percent accurate before you file with state and federal agencies. So, make sure you double-check all forms beforehand.
Use direct deposit. Something else that you should do that will make things easier on you as well as your employees is to encourage them to sign up for direct deposit. Not only will it save them time (because the money goes directly into their account each pay period), but it will drastically reduce the risk of you encountering check fraud or lost checks. Plus, since you’re not using as much paper, it’s good for the environment too.
Consider hiring a payroll processing company. Although you might think that it’s odd to suggest that you hire a payroll processing company in order to save money, it all depends on how you look at things. The old saying that “time is money” is exactly right. And so, if you’re not experienced in doing payroll, not only could it end up taking up a lot of your time, but potential errors could prove to be pretty expensive as well. Therefore, hiring a professional processing company to handle payroll for you might just be a really smart investment.
Know what your needs are. So, how can you determine if you truly need to hire a payroll processing company or not? Say that you were considering going with a company like Big Fish Payroll LLC in order to handle your payroll for business needs. One of the things that you should think about is what you actually would like them to do vs. what you have experience in doing on your own. Do you want them to issue paychecks? Do you want them to provide online stubs? Do you want them to prepare data for taxes? Do you want them to monitor sick time and vacation leave for you? Do you want them to file your payroll tax? By being clear on what you can do in-house and what you would be better off outsourcing, this can also help to save you a few bucks.
Don’t get penalized. According to the IRS, well over 40 percent of smaller businesses end up paying close to $1,000 in penalties each year simply because they either file their payroll taxes late or incorrectly. So, make sure that around tax time, you don’t make the same mistake. Always file right and on time. For more information on how to file payroll taxes, visit Taxes.About.com and put “payroll taxes” in the search field.