Payroll can be complicated, and most business owners lack the time and resources to do it properly. Failure to do so can incur penalties and fines. Hiring a payroll service alleviates the need to manage the process and ensures you comply with all laws and avoid possibly harsh penalties and fees.
How do you pay your employees?
Answering this question is the first step in determining the need for a payroll service. Is the person an employee or a contractor? When a person is paid on the Form W-2, the employer automatically withholds and pays all of the necessary employee income taxes as required by the IRS. These taxes include Federal Income Tax, State Income Tax, and FICA (Social Security and Medicare). In addition, the employer will pay all of the necessary employer taxes. These taxes include FICA (Social Security and Medicare), FUTA (Federal Unemployment Tax), and SUI (State Unemployment Tax).
When a person is paid on Form 1099-misc, all money earned by the individual is paid on an untaxed basis. It is then the responsibility of the individual to file and pay the appropriate taxes.
What is a payroll service provider?
A payroll service provider is a company that automatically processes payroll calculations, payroll tax statements, year-end taxes, and more. Many employers prefer to use these types of providers to help ensure their employees and taxes are paid accurately and on time. They can also help employers meet filing deadlines and deposit requirements and streamline business operations.
A full-service payroll provider goes beyond the basics of payroll calculations handling deposits and withdrawals, withholding and paying garnishments, and new-hire reporting. It will also file federal, state, and local taxes. Most full-service payroll providers integrate time and attendance and benefits administration.
An online payroll system makes paying employees (whether full-time or part-time) or independent contractors, such as freelance workers, more straightforward and convenient. Online payroll services operate in the cloud and don’t require users to install or download any software, allowing businesses to manage and run payroll from anywhere. Many of these systems automatically calculate how much employees should be paid each pay period like net pay. The systems can account for hours worked, shift differentials, overtime, holiday pay, taxes, and Social Security and benefit deductions.
Why should I consider a payroll service for my business?
Business owners need a simple and easy-to-use system to automate payroll tasks. Our business payroll service can also help you avoid IRS penalties for filing payroll taxes late or incorrectly.
Business owners prefer to spend time growing their business and developing employee and customer relationships. The payroll services available from Capital CFO+ eliminate the time and stress it takes to calculate payroll, taxes, deductions, PTO- even cutting the checks! Businesses with as few as one employee can benefit from utilizing a payroll service.
Can I do my own payroll?
Of course, you can learn how to do payroll, but with that comes a price tag greater than just time spent and cost of payroll. You need experience, and failure to correctly calculate the taxes could end with significant fees and penalties. At a minimum, you will need the following to calculate payroll:
- Employee information (e.g., pay rate and withholding information)
- Tax rates for Federal Income Tax, State and local payroll taxes, and unemployment taxes- FUTA and SUTA
- You will need your FEIN Federal Employer Identification Number
You can either manually perform the calculations or purchase a payroll software program and properly use it. Engaging with a professional and experienced payroll provider eliminates the time and worry of accurate and timely payroll processing.
Payroll is an essential part of human resources
In most businesses, payroll falls under the umbrella of human resources. Since payroll encompasses Paid Time Off (PTO) monitoring, the possibility of payroll garnishments and 401 deductions, the human resources contact in your business will utilize a payroll service.
Suppose you do not have a human resources department or contact. Capital CFO+ will provide human resources services as part of the enhanced payroll service. If you need additional help, our enhanced program covers you and your business for payroll, tax, and human resources:
- Payroll data entry
- Direct Deposit
- Payroll Delivery
- Robust Reporting
- General Ledger Interface
- W-2s and 1099s
- Tax Filing
- Employee Portal Access
- HR Helpdesk
- State and Federal Forms and Resources
- Employee Handbook development
- Job Description development
Recruitment and hiring are essential to creating a successful business. Engaging with a single-source provider of payroll, recruitment, and human resources services ensures your business is compliant with all federal, state, and local laws.
We can help you attract, hire, and onboard talented people.
At Capital CFO+, we get to know you, your business and listen to your payroll, human resources, or bookkeeping challenges. Our methods take the uncertainty out of these processes so that you can simply run your business. Schedule a time to talk with one of our managers and see how Capital CFO+ is with you throughout the process!
Resources: adp.com and https://www.irs.gov/
