It comes sooner every year and only seems to get more complex each time. Well, here are 5 things that may keep you on track this season:
1. Deadline for employee distribution.
Have you distributed W-2's to your employees yet? If not, you better get going because the deadline of January 31st is looming.
2. Deadline for reporting employee's earning to the IRS.
After that, don't forget you also have to report your employee's earnings to the IRS by February 28th.
3. Penalties if not done correctly.
Miss the deadline? You could get hit with some hefty penalties costing you a great deal of time and money to correct. The IRS has strict rules on how this must be done and for which employees. Not only will they penalize you for being late but they may also penalize you for filing incorrectly or even writing illegibly!
4. Who get's what?
The IRS requires copy "A" along with Form W-3. Copy "D" belongs to the employer. Lastly, employees receive copies labeled "B," "C," and "2."
5. How to avoid all-together.
Payroll taxes are just one of the many reasons to outsource your payroll, and businesses who choose to use Capital Payroll rest easy knowing that their employee's taxes have been submitted on time and for the correct amounts.
Have questions? Don't hesitate to contact us.
Welcome to 2015! If taking your business to the next level is on your list of resolutions, outsourcing your payroll should be one of your first priorities for many reasons. Here are just a few:
These 5 reasons for outsourcing your payroll are in no particular order, but most likely, the top reason you'll want to start outsourcing your business' payroll is because you're busy, and payroll isn't high on your list of priorities while focusing on making your business succeed. Outsourcing your payroll is one of the easiest steps you can take in order to free up hours per month.
Direct deposits, tax payments, W-2's, I-9's, exemptions, deductions, accruals and this is just the beginning. There is no doubt that payroll is a complicated industry with many different moving parts, that's why there are thousands of businesses similar to Capital Payroll that focus only on payroll management. Whether you have 1 employee or 1,000 employees, the rules are mostly the same and with our 17 years of experience, you'll be confident you're payroll is in the hands of experts.
3. IRS Penalties
Making sure employment tax payments are not only made on time, but also made for the correct amount can be a daunting task, and if they aren't correct, the IRS will impose strict penalties on your business. Many times these penalties can be more costly than that to outsource your payroll the entire year. So if you choose to outsource mainly for the convenience of paying your employees, know that you're also getting the peace-of-mind that your taxes will be paid on time and for the correct amount.
Outsourcing your payroll is relatively inexpensive and it can be one of the most valuable decisions you make for your business. As a business owner or HR professional, your time is not cheap and you can't afford to spend it figuring out if you're adhering to the most up to date tax regulations or how to set up direct deposit with your employees. Spend your time thinking of ways to grow your business while leaving payroll to the professionals.
Hypothetical: Your bookkeeper or controller gets a new job and leaves with little notice but a lot of knowledge on their payroll process. Now everything you had scheduled for the next week will need to get pushed back in order for you to learn about how things were done. Outsource your payroll and avoid this situation all together.