| The IRS's payroll tax deposit rules are becoming more and more strict with each passing year. This is the IRS's answer to making sure that all withheld payroll taxes (federal withholding, Social security, and Medicare taxes) are deposited in full, and on time. Even the most careful small business owners can fall prey to one of the IRS's costly penalties for failing to deposit withheld payroll taxes on time. The IRS isn't well know for accepting excuses, either. If you've had the pleasure of paying one of the IRS's penalties, you may find comfort in knowing you're not alone. Recent statistics indicate that one out of every three businesses pays a penalty each year. You can minimize your expenses (and penalties) by using an outside service to process your payroll. A Payroll Processing provider that specialize in processing payroll, and can help you avoid costly payroll penalties and free you of many other payroll duties. A business that specializes in payroll processing will generally offer the following services: - computing and preparing payroll checks for your employees
- preparing federal and state payroll tax deposits and seeing that you make them on time
- preparing federal and state payroll reporting forms, including W-2's
In addition to the above items, some payroll processing businesses will even pay any IRS penalties attributable to errors they make in processing your payroll, or in payroll reporting for your business. In addition to avoiding the cost of payroll penalties, try to quantify these other costs and use them when making your decision to use an outside payroll processing service: - How much time do you spend preparing your payroll? Include the time spent computing and writing payroll checks, filing payroll tax forms, and preparing W-2s.
- Do you have an employee who is responsible for preparing payroll? Could this employee's time be dedicated to other more profitable tasks?
- Would you feel safer knowing that someone who specializes in processing payroll and has expertise in the payroll area is taking care of it for you?
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