Processing payrolls can be difficult even for a small business because one has to consider factors such as applicable deductions, taxes, and allowances. Luckily, you can avoid these difficulties by using the services offered by a Sacramento payroll processing company. Benefits include:
According to the IRS, it penalizes one in three business owners every year for payroll-related tax returns errors. In 2013 alone, these penalties totaled $4.5 billion. For a small business or startup, such penalties can have a negative effect on reputation, staff morale, and growth because they shift focus from core functions to resolving the issues raised by the IRS.
Avoid Payroll Fraud Charges
Figures published by the Association of Certified Fraud Examiners show that payroll fraud affects 27% of all businesses in the US. In addition, this type of fraud is two times more likely to affect startups and small businesses than large ones. Unfortunately, payroll fraud can attract heavy penalties (up to $25,000 per occurrence in California) inclusive of backdated taxes as well as criminal charges. Luckily, you can avoid these problems by using the tools offered by a Sacramento payroll services company.
Automating payroll processing frees up entrepreneurs and their employees to focus on mission critical tasks, thereby improving productivity. This is particularly important because payroll processing tends to become increasingly complex as a business grows, meaning manual processing would require an increasingly larger number of staff.
Easily Access Data
Automating payroll processing also makes data easily accessible and enhances tasks such as data analytics or integration with other business management tools. For instance, you could integrate payroll processing and HR management systems, thereby enabling you to evaluate employee performance. Businesses are increasingly relying on data-driven decision-making processes to maintain a competitive edge.
By automating payroll processing, your business will enjoy benefits including better productivity; easily access data for data-driven decision-making processes; avoid payroll fraud charges; and avoid tax returns errors.