An outside payroll tax service can relieve your business of many of the burdens in the preparation, filing and reporting of your payroll related obligations. NJ payroll taxes pose reporting requirements to businesses of all sizes. Large companies have payroll departments devoted to taking care of a business' payroll and employee benefits needs. Small and medium sized businesses may have a portion of the accounting staff assigned to the payroll function, hire their CPA firm to do this task or enlist an outside payroll service to prepare, report and manage the payroll function for their company.
There are some reasons why preparing NJ payroll taxes through a payroll tax service might be a good fit for your company. Have you thought about such services but just haven't pulled the trigger? Here are some ideas to think about in making the move toward using an outside payroll tax service.
Cost/Benefit
The first step involves researching and meeting with outside payroll companies. Using data presented from these firms, a cost benefit analysis of their services versus the cost of in-house payroll preparation would follow. Would this service provide the cost savings desired? Would the service provide additional services which add value to the company's core objectives? Are there some benefits that are not quantifiable, but exist none-the-less?
Simplicity
The use of an outside payroll service to help with NJ payroll taxes should provide an ease of use and help simplify the payroll preparation and reporting process for your company. Will the new service that you are evaluating do this for you? Penalties for missed deadlines with the IRS and NJ Division of Revenue are steep. An outside service gives the security of accurate and timely filed returns. Does this benefit have value for your company?
Expertise
The professionals of an outside payroll tax service stand behind their work. They guarantee accuracy. For example, an inquiry by the IRS about a 940 filing would be handled by the payroll tax service with input from you as necessary. They also lend experience in areas that are tied to payroll, such as HR, benefits administration, insurance reporting, time and attendance management. There would be a basket of services for you to choose from when working with an outside firm.
Automation
In today's digitized world, accurate payroll information needs to be accessible in a timely manner. Both management and employees need access for good decision making. Companies are making data accessible directly to employees through use of company website portals and through the cloud. Employees can retrieve and evaluate their earnings records, their 401(k) investments and their time reporting. A payroll service can provide these packaged services. This could save your company the IT staff, the personnel and time needed to develop and support these systems. An outside service could provide these services for your company and do it in such as way so as to benefit your bottom line, increasing accuracy and ease of use.
Reporting
Accurate data gathering is essential for businesses of all sizes. Many systems collect employee time by project, years worked toward benefit eligibility or overtime hours worked by state in a multiple state environment. This data is then used for analysis and decision making for possible business expansion. An outside payroll tax service will provide added benefit for your company by ensuring accurate and comprehensive data reporting.
NJ payroll taxes, as well as the IRS, require a tremendous amount of reporting; from new hire reporting to employment verification to workman's compensation insurance. Can an outside service do this job better, more effectively and more efficiently than what you are doing today?
Benefits administration
NJ payroll taxes may be your main consideration when choosing a payroll service. Or your company may have a whole string of benefits to manage, report and maintain. A 401(k) may have a company match to compute after certain time periods have been met. The ACA requires new reporting requirements given certain employee FTE counts within the company. Has your company outgrown its software that manages the reporting of these benefits? Would an outside service help contain costs while providing better, more timely information?
Legislation and payroll tax compliance
Every year changes are made to laws at the federal, state and local level. An outside payroll tax service stays on top of all these changes. They keep you informed of these changes and help protect your company from risk. Health care reform management is a moving object that can be overwhelming. Is this an area in which an outside payroll tax service would add benefit to your company?
Every business is different. Your size and type of business, your people and your company mission all serve up to make your company unique. An outside payroll tax service can provide the expertise for creative solutions to complex business situations.
NJ payroll taxes are just the beginning of services which can be provided by an outside payroll tax service. The service will take the payroll information and, in turn, produce the numbers for the analytics in the areas of payroll, timekeeping and turnover necessary to help drive impactful business decisions.
Large businesses may have hundreds of locations within a state or in multiple states. An integrated solution as provided by a payroll tax service can help manage change and enable more efficient employee data collection for reporting and decision making. Accessing the data should be more effective, with the resulting decisions being made with better data. Legislative changes, such as the Affordable Care Act, can be implemented, monitored and reported by using the existing knowledge of the payroll service.
Multinational companies face additional payroll tax burdens and concerns. Ten, twenty or even thirty plus payroll systems may be in use. Use of an outside payroll tax service can help free up valuable internal employees for a simpler, smoother approach to this large and complicated task. Cost savings should be realized by eliminating the complexity caused by the use of multiple platforms.