Why You Shouldn’t DIY Your Payroll
On the surface, running payroll may sound like a simple task: you put in your employees’ hours and rate or weekly salary, calculate the amount for that payroll, and pay them, right? Wrong. Many small business owners don’t realize that payroll calculation involves more than multiplying hours worked by the hourly rate each pay period. As experts in the field, we at PGL3 Services LLC want to help you understand why you shouldn’t DIY your payroll.
Miscalculation of wages and payroll taxes
According to the IRS, nearly 40% of small businesses pay an average of $900 in fines for late or incorrect filings when the small business owners do their own payroll services. Secondly, compliance, small business owners worry about operating costs, but compliance with payroll requirements is often overlooked. It’s easy to be caught off-guard by new regulations and mandates because there are tax law changes every year or so! Payroll errors by small business owners doing their own payroll often lead to loss of eligible deductions, fines, penalties, and sometimes even litigation.
Cause more harm than good
Incorrectly doing your payroll could damage your reputation. You could lose your employees’ trust, harm employee morale, and increase your tax complications. It is very challenging to correct the issue. Small business owners will have to take additional administrative time to
- Keep your workforce motivated and happy
- Rectify any errors, including recalculating tax
- Respond to audits
Do things right - Hire a professional
A payroll expert knows all the ins and outs of payroll and can ensure that everything is done correctly. A payroll expert will have a working knowledge of basic accounting principles and payroll practices. They will also have experience with reconciling bank deposits and understanding federal, state, and local tax laws and regulations to ensure compliance.
A payroll company can provide real-time payroll calculations and compliance with federal, state, and local tax laws and regulations. In addition, a company with enterprise-grade solutions provides a seamless HR experience for both employers and employees. However, you will need to choose a payroll company dedicated to you and your organizational needs. An organization that understands your vision and can assist you in realizing it by providing you with the most current industry knowledge, dedication, and professionalism. Such a company will run your payroll efficiently and have the functionality to allow you to follow applicable labor laws, withhold correct payroll taxes, and pay your staff on time. The majority of outsourced payroll companies charge a basic package fee, ranging from $20 to $250 per month.
If you are looking for accountants and bookkeepers in Florida, reach out to us at PGL3 Services LLC. We are a full-scale accounting firm offering a wide range of services for entrepreneurs, executives, and independent professionals. Our accountants have more than thirty years of experience. We are focused on various aspects of running a successful and profitable business.
We offer services like business set-up, small and mid-size business consulting, accounting and bookkeeping, federal, state, and local filings, compliance, international services, and client and community education to clients across Pembroke Pines, Daytona Beach, Miami-Dade County, Broward County, Palm Beach, and the surrounding areas.
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