Skilled Payroll Services You Can Depend on in Marlton, NJ
Productive employees are the backbone of any business, no matter its size. To maintain a streamlined workforce, you need to ensure that each employee gets paid correctly and on time. Many small and mid-sized companies attempt to cut costs by managing payroll internally. However, minor mistakes in payroll could result in significant consequences. Errors in payroll tax withholding will attract costly fines from the IRS, while compensating workers incorrectly could impact morale in the workplace.
Because handling such workflows can be costly and time-consuming, you should consider outsourcing payroll tasks to an experienced professional. At Greentree Accounting & Tax Services, not only can our Enrolled Agent, Ken Hrin, handle all your payroll needs, but his credentials allow him to represent your business before the IRS in case of an audit. In other words, choosing our Marlton, NJ, tax and accounting firm to oversee your payroll is a critical step towards developing a streamlined payroll system.
Why Should I Hire A Professional Payroll Service?
Paying employees on time is an essential task that any business must carry out. However, payroll involves multiple steps that may bog down your operations. Rather than focusing on building your brand and attracting more customers, you may find yourself spending too much time on complex payroll functions.
Calculating payroll tax, providing adequate compensation to each position, and withholding deductions are critical workflows on any excellent payroll system. But without proper expertise in-house, you may end up spending valuable time tyring to get things right. This is why having a good payroll system is critical for your business.
You may be wondering why it's a good idea to outsource payroll rather than handling such tasks in-house. Outsourcing your payroll systems will benefit your business in the following ways:
Cutting Operational Costs
The most obvious reason why seeking professional payroll services makes sense is because you'll be able to save costs. Handling payroll in-house without proper expertise may result in significant complications. Not only could you make tax mistakes, but you could also end up compensating your workers incorrectly. Furthermore, you could find yourself spending lots of money on software, payroll employees, and compliance tasks. These workflows can drive up your operational costs and eat into your bottom line.
To address complex payroll functions, you should consider hiring a professional payroll service. We have optimized our resources and workflows to handle payroll-related tasks, including tax and compliance. This means that you can outsource time-consuming workflows to our professionals to cut costs.
Ensuring Compliance with Legal Guidelines
Any business that hires full-time employees will face compliance regulations. From taxes to withholding child support payments, employers are responsible for many different aspects of employee compensation. This is why accuracy and efficiency when handling payroll tasks is crucial.
You'd be surprised how small mistakes may result in significant consequences down the road. For example, incorrectly withholding employee taxes could attract IRS audits and fines. And the more the problem continues, the higher those fines will be. Outsourcing payroll to our experienced professionals will help you remain compliant in a constantly evolving legal environment.
Keeping Employee Data Safe
In today's data-driven environment, keeping employee data safe is critical to the success of your business. Hackers are always looking for weak points in your business networks that they can use to launch attacks. From phishing emails to malware, your sensitive data is vulnerable and needs to be protected. Companies that handle payroll functions in-house may end up spending more on data security and other related workflows.
This is why outsourcing is a better approach to payroll management. By working with a payroll expert, you can relax knowing that your employees' names, addresses, SSNs, and salary information are safe.
5 Characteristics of a Solid Payroll System
If you're currently struggling with payroll workflows, you may be wondering how to make your system more efficient. A professional payroll system is defined by proper tax withholding, accuracy in calculating wages, paying employees on time, and keeping records for future reference.
Unfortunately, many small to mid-sized businesses end up spending too much time and money on payroll functions. Even more concerning is that handling payroll in-house could result in numerous complications. While outsourcing is the way to go, how will you know that you've chosen the best payroll service available?
By keeping the following characteristics in mind, you'll be able to enjoy the benefits of efficiency in payroll functions:
1. Compensating employees accurately and on-time
The critical purpose of any payroll system is to compensate employees accurately and on-time. You should be able to record work hours, calculate wages, and deliver payment in a quick and efficient manner. When seeking professional payroll services, make sure these essential tasks can be completed with a high level of accuracy.
Many payroll companies focus on complex workflows and end up forgetting the fundamentals of a proper payroll system- the employees. Ideally, recording work hours and calculating wages should be done via an automated system. This helps reduce errors and costs while keeping the information up to date.
2. Accurate procedures for calculating and withholding taxes
Employers are responsible for withholding taxes from employees and remitting them to the IRS. Therefore, any good payroll system should be capable of calculating and collecting taxes, completing the required tax forms, and filing them with the IRS.
Payroll tax can be highly complicated, especially when you have many different employees in your business. This is why working with an experienced professional can help. Such a company should be able to calculate and withhold employee taxes, including federal, state, and income tax. Your payroll service should also be able to calculate Social Security contributions, Medicare, unemployment, and FICA taxes. In this way, you don’t have to spend hours calculating withholdings or taxes for your employees.
3. Keeping detailed records of payroll workflows
Any sound payroll system should also keep detailed records of workflows. Such records include previous working hours, paychecks, tax forms, and compliance.
Having detailed and accurate records can benefit your business in many different ways. For example, you’ll be able to solve disputes faster, prove compliance at any given point in time, and avoid issues with the IRS. And if the IRS ends up auditing your company, accurate payroll records will come in handy to prove that you filed all taxes correctly.
4. Detecting and correcting errors before payday
A good payroll system should also be capable of detecting errors in employee compensation. Depending on how you pay your workers, catching mistakes early can be the difference between costly fines and compliance issues.
5. Scalability at an affordable cost
Whether you have a small team of 15 workers or a large payroll that includes hundreds of employees, you need a system that functions correctly in many different contexts. Scalability ensures that you can correctly handle payroll tasks as your company continues to grow.
Our available payroll services offer different packages to suit the size of your business and its payroll needs. In this way, you only pay for what you need, and you can access additional services when necessary.
Understanding Payroll Tax
While most small businesses tend to focus on business income taxes, the elephant in the room comes into play when dealing with payroll taxes. Payroll taxes are the withholdings that come from an employee's paycheck.
In 2017 alone, payroll taxes represented 70% of all federal revenue. And because the government is highly dependent on taxes to run the economy, they pay close attention to payroll taxes collected from businesses throughout the country.
Payroll taxes come in many different forms, including state, federal, and local taxes. They also include withholdings for IRA contributions, FIC, social security, and Medicare.
What are Employees Responsible for When it Comes to Payroll Taxes?
Employers have the responsibility of deducting payroll taxes from each employee's paycheck and remitting such payments to the relevant government agency. For example, federal taxes are remitted to the IRS, while state taxes are sent to the appropriate department of revenue/labor. State deductions include taxes, unemployment, and employee retirement schemes. Every business has payroll tax obligations that are determined by the size of your company, its operations, and reported revenues during each year.
Keeping track of payroll taxes can be complicated, especially when you have many workers. This is why hiring a professional payroll service can help. With our payroll expert also being an Enrolled Agent, you'll be able to stay on top of payroll tax workflows. EAs are also professionals in tax resolution and can help you resolve tax disputes if they arise in your company.
In a nutshell, employers should be aware of the following critical payroll functions:
5 Common Payroll Mistakes that Small to Mid-Sized Businesses Make
At first glance, handling payroll internally may seem like an excellent opportunity to cut costs. But the reality is that payroll functions are complex. Keeping track of working hours, calculating and withholding employee deductions, and preparing tax forms can take lots of time and effort. As a result, you may end up making make many different mistakes during payroll functions.
Here are 5 of the most common mistakes small businesses make.
How a Tax Professional Can Help with Common Payroll Mistakes
To help avoid the mistakes mentioned above, you should strongly consider hiring a professional payroll service. Our Enrolled Agent has the knowledge and expertise of handling payroll functions. He also understands the ins and outs of payroll tax, putting him in a position to help correct common mistakes that you may encounter. For example, mistakes in employee compensation can be corrected by properly classifying your workers.
Our payroll services use customized software and automated tools to handle your critical payroll workflows. They also focus on each employee that you hire and determine how much tax they should pay, personal deductions, and other contributions. Furthermore, a professional payroll service can help you keep track of working hours while properly categorizing each employee. In this way, you'll make fewer mistakes during payroll functions.
Our Enrolled Agent can also represent your interests in the event that you're facing payroll tax complications. If you previously made a mistake in withholding and remitting taxes, our EA can help you avoid costly fines or negotiate a repayment plan for back taxes.
Expertly Serving All Your Payroll Needs
If the thought of payday sends shivers down your spine, consider hiring Greentree Accounting & Tax Services for professional payroll assistance. Are you ready to take the stress out of payroll and boost productivity in your business? Contact Ken Hrin and his team today!