5 Pains of Doing Your Own Payroll
The concept of calculating, preparing, then reporting your company’s payroll can be a daunting task. While there are several reasons to consider outsourcing your payroll, let us explore 5 pains of doing your own payroll:
- Knowledge: By no means does this mean you are incapable of understanding payroll, but the fact is payroll can be complex in calculation. In addition, payroll likely is not what you have been trained to do. Rules from the IRS change yearly. Your company’s growth can make its own changes in payroll as well, for example adding benefits and what payroll rules apply when they are added? A payroll firm would have the staff equipped with the knowledge to keep up to date with these ever-changing needs.
- Software: While preparing your companies payroll may be lighter on the pocketbook, there are still potential costs to do it yourself. Most software will charge a fee for a license to assist in the preparation of payroll. Along with this fee, as described earlier, rules change and therefore software needs to be updated regularly. Making sure you keep your software in its most recent update can be either consuming, or potentially forgettable. In addition, knowledge is still necessary to run the software properly. Programming the software to meet your company’s needs will still require an understanding of payroll rules to be sure the payroll is being calculated properly.
- Handling Obstacles: Challenges happen, no matter how careful anyone is. Dealing with a challenge on your own can feel overwhelming. Notices can come from many sources, the IRS, State Department, Unemployment, or your benefit provider. A payroll firm has experience in dealing with these obstacles and would be able to aid in the communication process with such occurrences.
- Time: We like to use the phrase, “Is it worth spending for a service if it frees time for you to make the money doing what you are good at?” It will not only take time to prepare and issue payroll checks to your employees, but also to comply with the payroll rules that your company has. Payroll taxes will be due, quarterly tax returns will need to be reconciled and filed. There are also insurance audits to prepare, and benefits to potentially be made. All together these demands take time away from your ability to do more for your customers.
- Desire: Let us be honest. How many really want to do their own payroll unless they have the training and background in doing so? Some of the previous items described can give a person a burning hole in their stomach. Work should be rewarding, and if something does not feel rewarding, would it be better to delegate this duty?
Here they are! 5 pains of doing your own payroll. Hiring a payroll firm, such as D.K. Arndt, P.C., would let you relieve yourself of these pains. Our staff has the knowledge and constantly updated software to help you handle the obstacles that come your way. If you would rather do what you are good at, and desire a change, let us free up your time to make more money doing what you enjoy.