As a small business owner, do you dread facing that growing to do list of administrative tasks that you can’t afford to overlook, yet can’t find enough hours in the day to address?
It’s a safe bet that many of these tedious-yet-essential items are related to employee payroll and payroll taxes. And the time and energy they consume can be stifling. Since 1980, there has been an increase of more than 400 percent in employment related laws and regulations, many of which fall in the payroll arena. And if you fail to meet them, the fallout could cripple your company. Outsourcing payroll and payroll tax administration can be the lifeline you need.
Profitability Pillar 1: How Does Outsourcing Payroll and Payroll Tax Administration Benefit Businesses?
When you open your own company, whether you like it or not, you become a member of the government’s tax collection team. And, if you fail to pay employees correctly, withhold accurately or remit taxes in a timely manner, you open yourself up to costly penalties. This explains why payroll is by far the most commonly outsourced business service.
Consider your options.
You can outsource to a payroll company to meet your basic needs and check all the boxes when it comes to tax compliance. Or, you can outsource to a professional employer organization, or PEO. What makes a PEO different is the fact that it’s not just in the payroll business; it’s in the people business. For a PEO, preparing payroll is a core function, but it’s also the mechanism that enables the delivery of other, more value-centric services.
- Because your PEO becomes your staff’s employer of record, your employees have access to a comprehensive suite of highly-competitive benefits that might otherwise be unavailable to them. Even if you opt to retain your own benefits plan, having your PEO handle payroll preparation ensures accurate withholding and documentation for plan eligibility.
- Your PEO maintains all your risk management and workers’ compensation records, whether or not you elect to participate in its workers’ comp program. Unemployment matters and garnishments, as well as the filing of employee W2 forms, are also handled for you.
A person’s paycheck is what enables them to meet life’s responsibilities. They expect – and deserve – to have the right amount of money arrive in their bank account each pay period, without fail or errors. They also expect an accurate accounting of this process, as well as easy access to their payroll information. Assuring this to your employees is a key step toward attracting and retaining top talent. Without it, they’ll go elsewhere, where it’s guaranteed.
How Can Lyons HR Help?
Payroll and payroll tax administration – along with employee benefits, safety and risk management, and HR compliance – is one of the pillars of profitability that support your business as you grow and strengthen it. The right PEO partnership enables you to keep all four pillars just as strong and solid. To learn more about how a PEO can turn HR into a strategic in initiative to build your profit margins and protect your valuable assets, contact Lyons HR today.