Payday is awesome.
Unless you’re the one running payroll.
That’s because today’s HR management processes are ridiculously complicated. Employees are spread across state lines, with each having their own version of taxes and compliance rules. Then you add on contract employees (1099s vs W2s) and telecommuters, workers on family and medical leave, part-time employees — it’s enough to make a person’s head spin around like you’re riding the Tilt-a-Whirl at the county fair.
From taxes to payments, payroll is time- and labor-intensive. If you make a mistake, you might not only upset your employees, but you may be subject to fines and penalties that could be very costly for your business.
Did we mention there’s an easier way?
Just Say “No” to Payroll
The truth is that payroll is one of the most complicated functions in the HR list of tasks. It is an extremely high-risk activity. If you mess up a person’s paycheck, it could really mess with morale. Explaining to the IRS that you transposed a few numbers will not endear your company to their agents.
Just look at the steps necessary to set up payroll in today’s regulatory-laden environment:
- You must understand and correctly calculate local, state, and federal taxes, Social Security, and Medicare for each employee
- You must also handle corporate payroll taxes, which must be filed quarterly. If you fall behind you could be subject to interest payments
- Did we mention the unemployment tax at the state and federal level?
- You must also be sure employee benefits are being deducted correctly; these vary by policy type
- What about overtime? Do you know the rules governing overtime? You’d better, or you’ll be liable for more governmental fines and penalties
- Even worse — these rules are constantly changing, so what may work this year may be different next year
If you don’t have a headache by now, you will later. Unfortunately, there is no software on the market that completely eliminates the “by-hand” calculations that sometimes accompany payroll.
Fortunately, there are experts standing by to take over these tasks.
How can outsourcing payroll help your business?
The Benefits of Payroll Outsourcing
The first big advantage to outsourcing to a payroll expert is the time you’ll save. This is particularly important in the small to mid-sized business, where it’s natural to wear a lot of hats. Imagine what you could do to build your company, if you weren’t struggling with payroll every few weeks?
The second advantage is that the service you choose will actually pay for itself. That’s because you won’t be paying fines or penalties, or making mistakes like overpaying on taxes. Your employees will be happier if they’ve experienced errors in pay in the past. You won’t walk around feeling like the IRS has placed a big red target on your back.
That leads us to the third advantage, which is compliance and risk mitigation. Staying on top of the latest regulatory changes is a full-time job, but crucial to keeping your company legal. Outsourcing payroll helps eliminate the risk of violating laws and regulations.
Sold? Want to Get Started?
Artisan knows a lot about these issues, because we handle payroll for our clients and the creative talent they engage. We can even just handle payroll for you. Call us to find out how we can help you avoid payroll’s perils.