There are a lot of payroll service providers out there that provide services, some that do not provide all of them, and even some that provide services that the others provide. Clearly though, after considering the myriad of services that payroll service providers provide to companies, it is easy to say that they definitely have their place in the business world.
The services that a payroll service provider offers gives the employer ample additional time in its schedule to cater to its customers and focus on the most important thing you should focus on while running your business: the bottom line! As such, companies can be more profitable and worry about pleasing less people if they would simply choose to hire a payroll service provider.
Staying current on tax and unemployment laws that are constantly changing is of utmost importance for companies looking to stay ahead of the game. Government deadlines and fines/penalties that arise from not knowing law and regulations with regards to payroll tax and compliance can easily be avoided with a payroll service provider. A payroll company can do a lot of things with regards to payroll tax and compliance, including the following:
- Respond to inquiries from tax and other governmental agencies
- Prepare and submit payroll tax forms and other compliance reports
- Calculate state, local and federal tax return amounts and make deposits
Payroll service providers are in a great position with regards to payroll tax and compliance because it is such a complex field. Hiring a payroll service provider for this area of your business could help you save time and money because payroll service providers can help you a great deal here with tax credits/incentives and new hire reporting services as well. The following are some examples of things they can do with regards to the two preceding capabilities:
- Submit new hire reports to the state agencies they are supposed to go to
- Streamline employment tax credit screenings
- Provides management reports on everything it finds during its job
- Administers and negotiates tax incentive deals with government agencies
- Capture new hire information
In addition to the above items the payroll tax and compliance arm of most payroll service providers will do one essential thing that is more important than anything else - payroll service providers will lower your effective tax rate. With savings from the tax credits, refunds and incentives that a payroll service provider will find you with regards to your payroll tax your effective right may well be much lower than many of your competitors. This will enable you to gain a competitive advantage and will help you gain market share in some circumstances. Most of all, it will move you a step closer to fulfilling your financial goals and to making your customers happy. If this happens then your payroll service provider will have done its job to the fullest.