One of the most common problems small business owners face is simply not having enough time to complete all the behind the scenes work that goes into running a business. Paying employees, in particular, is a very time consuming process due to all of the tax work and other paperwork required to be compliant with state and federal laws. Because of this, outsourcing payroll processing to a company that specializes in the service can be a cost effective and efficient means of paying your employees correctly and on time.
Reducing the amount of liability that you personally have when doing your own payroll is one of the most important benefits that outsourcing payroll can have on your business. The majority of payroll processing services assume all of the legal and financial responsibility for your payroll. So if there are any fees due to filing the incorrect paperwork or filing after the required date, the processing company typically assumes liability. When searching for a provider, you should specifically ask if they assume these risks when handling your company’s payments.
Another benefit of outsourcing your small business’s payroll processing is that it frees up more time for you and your employees to focus on other tasks. If you are not personally doing your company’s payroll, you will likely have an in-house employee handling it. Think about all the other tasks more relevant to the business they could be doing. If he or she is stuck doing the paperwork, it could be costing you promotion or sales, which leads to a smaller number of customers doing business with you.
Yet another benefit of payroll outsourcing for small businesses is not having to personally deal with complicated tax forms and filing deadlines. While businesses in every state have to comply with federal tax regulations, there are also state regulations that vary state to state. Specialized payroll companies are familiar with everything you need to have done in order to ensure you have filed correctly.
Starting Payroll: A Guide for Corporations (6 Things to Do!)
The Methods to Getting Started
When opening anything new, incorporation takes time as well as patience. Below are a few things that will help you get started when starting a payroll for your incorporation.
Every payroll funding company can choose its own payroll processing service. Work with your bookkeeper to choose one that has a good price and, of course, is dependable.
- The incorporation must be completed.
- The owner must provide the Business Identification Number.
- The must open a corporate checking account.
- The owner must fill out a TD1 (www.cra-arc.gc.ca/formspubs/frms/td1-eng.html)
- The administrator must fill out the TD1.
- Most payroll services will require you to sign a contract setting out the terms of the agreement.
The corporation can process payroll 48-72 hours after all of the payroll information has been received and entered to the right people.
After your done doing that then you can start hiring for your business if it’s administrator, sales rep or whoever is needed to make your business complete.