Small business payroll service: Is it necessary with one employee?
I saw a question like this on Quora.com. We get asked this question in different ways all the time. Why should small business payroll service be enlisted when business owners hire their first employee instead of doing payroll themselves? I’ll answer that with some questions of my own:
- Why would you want to learn all of the ins and outs of payroll law and regulations?
- Are you qualified to know what and how to do payroll, deposit taxes, file tax forms and defend yourself when the IRS or the State makes a mistake?
- Can you quote statute and regulations to an IRS agent trying to enforce collections on a mistake they made?
- Would you know how do you appeal a bad decision?
- Do you know how to terminate an employee for cause so you don’t have to pay for their unemployment benefits?
- Do you know how to get tax credits (25% of wages) for paying them for a day off if they are sick or one of their family members is sick?
- How much time are you going to waste on tasks that are not central to your business?
- You can’t spend that time better on your business?
To do it right is going to take several months of your time. Wouldn’t you rather spend that time on growing your business?
The IRS makes egregious errors on a daily basis. They are overworked and are human. But, that doesn’t matter when you receive a letter from the IRS. You will have to prove your innocence. If you are not proficient on everything I just mentioned, it would be in your company’s best interest to outsource your payroll to a payroll service provider. In the long run, you’ll save time and money because your time will be freed up to focus on growing your business.
Schedule a demo with GetPayroll and we’ll tailor payroll services to your needs.