The payroll process requires 100% accuracy with many challenging tasks such as tracking hours, calculating wages, deciding which deductions to take and how much to take, and comprehending local, federal, and federal tax laws. Also, record-keeping can be challenging. According to the IRS, you must keep records of your employment taxes for at least four years. Additionally, around tax season, you must distribute W-2s. We recently discussed seven steps you should take to establish payroll for your small business. Now, we’ll take the time to show you a few signs that you need to optimize your payroll process.
If You’ve Faced Non-Compliance Fines
The IRS collects a lot of money when there are inaccuracies, late filings, or failures to pay. According to the IRS, if you file your return over 60 days late, the minimum Failure to File Penalty is $435 for required that need or needed filing in 2020, 2021, or 2022, or 100% of the tax required to be shown on the return, whichever is less. A non-compliance fine from the IRS can be financially devastating if you’re a small or mid-sized business owner. Non-compliance fines are typically a direct reflection of gaps in your payroll process. Hiring an outsourced company to take care of your payroll services can help avoid penalties, compliance violations, tax agonies, incorrect filings, and missed deadlines.
If You’ve Ever Miscalculated Pay
It’s not hard to calculate pay if your employees are salary or work fixed hours without being eligible for overtime. However, the payroll process can be more difficult when you add moving parts, such as paid time off, vacation, overtime, and commissions. If you make a mistake, you could underpay your employees, lose credibility, and jeopardize long-term employee retention. Additionally, it takes time and effort to correct a payroll mistake.
If It’s Been Hard to Keep up with Tax Laws
Local, state, and federal tax laws are ever-evolving. You typically have to follow more than one source or attend or read notes from regulatory forums to keep up with them. As a small or medium-sized business owner, you might not have time to dedicate to this. Companies that offer payroll services have in-house experts who monitor changing employment regulations, taking the stress away from you.
Count on Malden Solutions to Handle Your Payroll Services
The payroll process can be challenging, but it doesn’t have to be. Hiring an expert specializing in payroll services leads to less confusion, takes some weight off your shoulders, and minimizes mistakes. It’s best to recognize when you’re taking on too much responsibility sooner rather than later. Call Malden Solutions today to learn more information about the advantages of outsourcing your payroll services.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.