Contrary to what many people think, payroll is not a simple bookkeeping function or an annoyance that business owners or accountants have to take care of every month. It plays a crucial role in attracting, motivating and retaining employees. If miscalculation leads to errors, employees may become demoralized and dissatisfied.
Errors in calculation aren’t the only issues that you should watch out for. You ought to have an in-depth understanding of many regulations and tax codes. A mistake concerning contractors and employees’ categorization, taxable items, W-2 forms, levies & garnishments, tax deposits, unemployment taxes, deadlines for filing taxes and/or overtime compensation can set you back by thousands of dollars.
Having a good payroll service can help minimize or even eliminate the errors mentioned above. There are many other benefits of having a good payroll service for your business. Some of them are explained below.
Boosts employees’ morale
Payroll usually has great effects on the general morale of employees. Employees who work for a small business usually know more than they should about its financial stability. If any problem occurs with the payroll, they’ll start doubting the company’s financial stability and integrity. As a result, they’ll become demoralized and less productive.
Reduces tax bills
A good payroll system ensures that your business pays lower taxes to both the federal and state governments. It ensures that employees accurately complete W4 withholding forms. Tax officials make use of information availed on the forms to withhold employees’ taxes. A good payroll system also makes sure that you withhold the correct amount of taxes very financial year from the payroll.
Saves money and time
Preparing the payroll can be very complex and time-consuming process. The job must be done at least once every month. Having a good payroll system helps to save money and time. The system ensures that employees receive the right amount of money on time, taxes are paid on schedule and all withholdings are accurate.
In a small business, a good payroll system enables employees to appreciate their worth. This is because all their compensation is integrated into the payroll system. Every year, supervisors usually evaluate the performance of employees, and those whose performance is satisfactory are rewarded with bonuses, promotions and salary increments.
An employee’s salary, pension benefits, bonuses, life insurance, allowances and health insurance are all inbuilt in the payroll. Therefore, it’s critical to have an efficient payroll service for your business.
Partner with us
Norton Financials is a distinguished provider of payroll services. Our team knows everything about payroll processing. They are professionals with skills and experience in information technology, government regulations, human resource, compliance, compensation and taxation. When you get the Intuit Quickbooks Payroll service from us, you’ll save money, time and other resources. Get in touch with Norton Financials today.