When your business finally hits the milestone of hiring employees or contractors, nobody would blame you if you feel like celebrating. After the party, however, you’re faced with one problem: handling the payroll. While hiring extra people doesn’t necessarily create a problem with cash flow, it can present an organizational hassle. But it’s a hassle that – fortunately – can belong to someone else.
Naturally, payroll processing can come with a lot of unanswered questions for any Southern Utah business. Some of the issues that need to be considered are:
- Determining appropriate wages
- Withholding the right amount of tax
- Calculating and tracking PTO
- Insurance premium deductions
So, how should you handle the newfound joy of payroll processing? The answer is up to you. However, you basically have two choices. You can hire your own payroll manager, or let a professional accountant or other service handle it for you.
But isn’t that expensive?
No matter how you choose to do it, there is some expense involved in payroll. If you hire someone in-house, you’ve got to pay their salary, plus provide benefits, office space, etc. If you decide to out-source the job, you’ll be paying them just like any other service you might use.
The fact is, using a third-party payroll service – such as a professional accountant – usually costs a lot less than hiring a payroll manager. And since you won’t have to handle the task yourself, you can focus on training essential employees and growing your business even more.
Aside from what it can save you in time and resources, letting a professional accountant handle your payroll has some other nice advantages:
- More complete service – When you let an accountant do your payroll, you’ll usually have access to many other related services. For example, they can usually help with things like retirement plans, reporting, W2’s and other documentation. These other services can save you even more time, and don’t usually cost much more.
- Greater accuracy – A professional accountant can easily stay on top of changing laws and regulations that affect payroll and tax withholdings. If you want to ensure compliance and avoid penalties, an accountant is your best bet. They understand your need to have everything done right, and have every incentive to keep their clients happy.
- Reduced risk – What happens when your payroll manager decides to move on? They can carry a lot of sensitive financial information right out the door with them. This can present increased risk for you and your other employees, not to mention the hassle of having to train someone else to do the job. If you use an accounting professional for payroll, this won’t be an issue.
You can’t beat the convenience of using an outside accountant to handle payroll. Instead of doing it yourself or hiring an extra employee, you get worry-free and accurate processing without unnecessary expense. And that makes watching your business grow and flourish that much sweeter.