Struggling with payroll processing? We can help.
Business owners and leaders often don’t anticipate how tedious of a task processing payroll is when they are planning for their company’s operation.
Staying current on tax laws, keeping employee data safe and secure while still using it for tax calculations and ensuring the correct regulatory bodies are paid their share of those withholdings is a huge undertaking. As the company grows, so do these tasks, and the liability which comes along with making all these calculations for every paycheck.
Our company takes on this time-consuming task, and other administrative duties, for businesses in Dublin, the Bay Area and beyond. We are proud to partner with businesses of all types and sizes to provide expert payroll, human resources, tax prep and more.
Below you will find some basics of payroll taxes, and the benefits of using our service.
Taxes are taken out for local, state and federal entities. The amount of taxes withdrawn from each check is determined not only by the laws of each jurisdiction, but by the tax bracket which the employee finds themselves in, and the amount of withholdings they have selected as well.
Federal taxes include the largest amounts taken out. These taxes were mandated by the Federal Insurance Contribution Act, so they’re commonly known as FICA taxes. These funds go toward funding Social Security and Medicare. Those two programs are due 6.2% and 1.45% from every employee’s paycheck, respectively.
For each paycheck, the employer must match the amount deducted from each check. Both the deduction from the employee and the match from the employer are paid directly to the IRS periodically.
Local and state agencies also have their own tax laws, which are subject to regular change.
As a business owner, making these calculations in-house is possible, but only with the help of specialized payroll software. Even when using payroll software, business owners and/or employees are not payroll experts and the software is not fool-proof. In addition, processing payroll in-house opens the door for fraud.
Partnering with a professional payroll service provider with a track record of success can yield serious benefits to businesses.
The first and most obvious benefit is the ability to pass along this time-consuming and tedious task. Removing the burden of payroll processing allows your team to focus on moving the business forward by perfecting your products or services, earning new business, training employees or any other important task.
Another advantage is a layer of protection against tax and paycheck error. Using an expert payroll service means fewer mistakes in tax calculation, so you’re less likely to end up owing more taxes and/or getting fined if taxes are underpaid.
While all businesses like to believe their employees are honest, payroll fraud occurs often when it’s processed in-house. By allowing your employees to process their peers’ checks, there is always the chance for numbers to be changed, extra hours added or other extra payments made. When you use a payroll partner, the chance of fraud is greatly minimized.
If you have more detailed payroll tax questions, or if you think our services can help your business, give us a call today.
