Unless you happen to be a payroll expert, chances are you don’t look forward to this responsibility during tax season – or ever.
At best, it’s time-consuming, taking hours away from more strategic and pressing responsibilities. And at worst, it can result in costly penalties, audits, fines, and disgruntled employees – who will quickly spread the word, at the potential cost of your reputation as a desired employer.
To avoid these unpleasantries and the stress that accompanies them, the right solution for your growing business may be outsourcing some or all of your payroll responsibilities.
We’ve Done the Research
Key HR has deep-dived into the statistics around payroll mistakes: According to government records, a third of all employers have been charged at some point for an error, with total penalties extending into the billions of dollars.
Regardless of the size of your company, Key HR can save between 20 and 40 percent in expenses related to payroll processing. This results from:
How Key HR Can Help Come Tax Season
Outsourcing payroll gives you more time to focus on what matters most: running your business.
- Just one example: Each pay period, every employee’s hours must be totaled, verified, and multiplied by their pay rate. Then, the correct amount of taxes must be calculated and deducted. If there are additional benefits involved, more calculations are necessary. Similarly, there are myriad details involved in preparing paychecks and stubs, generating reports, and preparing and remitting taxes and returns to various government agencies. As your outsource partner, we’ll take all of this out of your hands.
Minimization of Errors
Payroll errors can be devastatingly costly for both employees and employers. For instance, a single mistake in state deductions can lead to an unexpectedly large tax deduction from a person’s final paycheck of the year – during the holidays, no less. Missed hours or incorrect pay rates can also inadvertently impact an employee’s pay, leading to lasting resentment and, ultimately, damaging your reputation as an employer. To make matters even worse, errors can trigger fines, audits, and penalties. And remember, you are legally responsible for any misrepresentation or failure to report employment taxes accurately.
Enhanced Data Security
By outsourcing payroll, you can avoid the risk of embezzlement, identity theft, or record tampering. Key HR provides state-of-the-art systems to store and protect your data and avoid redundant backup and multiple server locations.
Understanding all the deductions for local, state, and federal taxes and programs like FICA, Social Security, and Medicare is a job in itself. As your outsource partner, Key HR can keep you up to date and handle all the administrative details.
Want to Learn More About Key HR?
Key HR can also help with the integration of payroll and benefits data and employee self-service options. Let us assist in meeting your unique payroll needs, during tax season and year-round – competing with any local or national vendor on both services and price. To learn more, contact us today.
- Posted by admin
- On January 23, 2023
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