Why Use an Online Payroll Service for Your Small Business?

Once your business gets to a certain size, you’ll almost certainly need to move over to automated payroll, but most small business owners believe that size needs to be relatively large. Sure, when you have 100 employees, you need an automated payroll service, but what about 20 employees? What about 10 employees? As a matter of fact, online payroll can be helpful for businesses of almost any size. Here are four benefits of an online payroll service for your small business.

1. You’ll Reduce Your Company’s Possible Tax Problems

As a company, you have certain tax burdens that you need to think about. This is even more true when your employees live in different states; the tax burden you have in California will likely be different than the burden in Maine. Managing all of these tax burdens can be incredibly difficult if you do it manually. Instead of trying to manage your tax needs manually, you can use an online payroll service that will do it for you.

2. Your Employee Pay Will Have Fewer Mistakes

You want to have a reputation for paying your employees accurately and on time every time. That way, your employees feel like valued members of your company, which is likely to make them more loyal to your company overall. You want to reduce mistakes as much as possible in paying your employees, and an online payroll service can help.

3. Your Employees’ Tax Filings Will Be Simpler

When it comes time for your employees to file their own taxes, you want to make sure it’s easy for them to do so. At tax season, your employees will likely need an employer-provided form, like a 1099 form or a W-2, and being able to provide that form quickly will make tax season easier for everyone. Most online payroll software will automatically produce these forms for you as tax season gets closer, saving you a lot of time, effort, and potential miscalculations.

4. Your Accounting and Bookkeeping Staff Will Have Simpler Jobs

An online payroll service won’t remove your need for accounting and bookkeeping staff, but it will free up a lot of their time. That means you can use them to help tackle important elements of your business, which might include things like helping you figure out where you can reduce expenses and what products or services are the most profitable. By reducing the burden on your accounting and bookkeeping staff, you’ll be able to tap them for things that you can’t automate, which should be what you’re paying them for, after all.

Conclusion

An online payroll service can start helping you when you only have a few employees on your payroll. Even if it seems like you could do payroll manually, it might be worth it to invest a bit into an online payroll service to receive benefits you might not have expected. With an online payroll service, you’ll likely end up saving more so you can do more with your profits.