Each year, the IRS assesses penalties against more than 8 million individuals and organizations due to the delinquent remittance or incorrect filing of federal payroll taxes. This is just one of the reasons that employee payroll for your organization ought to be handled by professional employee payroll services. Even if you have a basic understanding of how to do payroll, the devil really is in the details. Letting payroll management professionals handle payroll tax issues and other small business payroll needs has become an increasingly more important service as more small businesses reach the market these days. Allowing online payroll processing to simplify payroll for a business is incredibly secure. Some owners of companies do not trust the idea of third party companies working on their payroll, or having any financial information about that organization at all. This is a bit paranoid, and it is actually very safe to allow certified, proven payroll services to work with small business owners on their taxes.
Since 48 percent of business owners admitted that payroll tax penalties they were assessed were valid, it is clear that some of the problem lies with ethics. Certain business owners will try to skirt the law in order to save some money here and there. If you are not the type of professional but wants to get a bad reputation as a person willing to skirt the law, but you still make an error on your payroll, your erroneous payroll management will not matter. Most clients and investors will assume that you deliberately try to cheat your way into savings. However, payroll services will help you avoid being viewed as a corrupt business owner. Professional payroll services will make sure that you have your taxes prepared with a keen eye for detail.
Most payroll services charge very fair rates for their payroll support provided to small or medium businesses in need of a payroll provider that can provide web portals or automated phone systems for employee access. Once you begin working with third party payroll services, you will still be able to retain control over which members of your staff see your payroll information. Professional payroll services will not be authorized to disclose your financial information to anyone but the state or federal government, or authorized personnel that the owner of the business retaining payroll services has approved to view payroll documents, financial statements or other documents related to the operating budget.
See this reference for more.