Comprehensive payroll services across San Diego have been in high demand ever since businesses across the region have started abandoning in-house performance of non-essential functions in favor of an attractive, cost-effective alternative: outsourcing payroll.
Outsourcing payroll is a quick and simple process which represents an effective and straightforward way to secure major savings for your company and focus your time, energy and attention on what matters the most: running your business.
So what are the key reasons to outsource payroll and what do you stand to gain by outsourcing payroll sooner rather than later?
How does outsourcing payroll work?
As a business owner, you have a wide range of responsibilities which include tasks such as paying your employees and filing your taxes. Aside from being time-consuming, these activities require precision and accuracy. Although a non-essential, processing payroll is an important workplace function which can give you a headache even if you have been doing it all by yourself for decades.
Outsourcing payroll may not benefit all businesses to an equal extent. For instance, if your staff receives salaries instead of wages, it may even be more convenient to process payroll internally. But after you factor in the time you put into managing your in-house payroll processing process and processing payroll while keeping track of any changes to your business and to tax regulations, you may find the responsibility will soon turn into a burden. What seemed like a smart way to cut costs at first may become an endless source of frustration, especially once you take the potential risks of costly mistakes into consideration.
Payroll services, on the other hand, offer you a straightforward way to streamline and simplify this process, with the added perks that benefit your business in the long run:
- Avoidance of disruptions
- Reduction of costs
- Increased employee satisfaction
How is payroll calculated?
Payroll calculations are performed according to a certain payroll schedule or pay period determined by the business. To arrive at your employee’s net, you need to calculate their gross wages and payroll deductions, including payroll tax and retirement fund and health insurance contributions. The simplified process can be summed up as follows:
- Calculate base pay
- Calculate deductions
- Track payroll information
- Pay payroll taxes
What are payroll taxes comprised of?
All the payroll taxes that you are responsible for are jointly referred to as payroll tax. A portion of employee wages will be used to pay taxes on their behalf while you will need to cover payroll taxes out of the company’s revenue. This means you will need to take out local, state and federal taxes, namely, Income Tax, Social Security, and Medicare, from the gross calculation. If you have no employees, you will need to pay the self-employment tax, which is Social Security and Medicare combined.
How long does payroll take to process?
The duration and complexity of the payroll process depends on the number of employees. Professional payroll service providers usually rely on specialized software which makes the job easier and minimizes risks of error, allowing them to set up a comprehensive, user-friendly system customized to your needs. This is especially important from the tax filing perspective. To make the process even faster and more efficient, you may opt for direct deposit instead of checks.
What do you stand to gain by outsourcing payroll?
Outsourcing payroll benefits both the employers and the employees. It offers the following key benefits:
- Easier management of appropriate taxes and compliance
- Accurate direct deposit transactions administered in a timely manner
- Detailed and accurate record keeping conducted in accordance with the standards set by the Wage and Hour Division of the Department of Labor
Providing comprehensive payroll services to San Diego businesses
If you want to gain a profound understanding of your company’s financial activities and a clear insight into the profitability and financial health of your business, put professionals at David York’s Tax Service in charge of handling your payroll. Aside from cost-effective payroll services, we also have years of experience in providing tax filing assistance to our clients in Downtown San Diego, the very heart of the city, to any other area across San Diego County. We are the partner you can trust to support your business and help you prioritize your business needs. Reach out to us today!