5 Ways a Payroll Accountant Can Help Streamline Your Business

July 15, 2015

If payroll was as easy as writing a check, there wouldn’t be such high demand for qualified payroll professionals in Maryland. Unfortunately, payroll is far more complicated than it appears, and payroll mistakes could cost you the trust of your employees, as well as penalties from the IRS. And although there are plenty of payroll software products out there, they often can’t be trusted to fully automate your payroll process, and they need to be constantly updated and monitored. At Relate CPA, we think that payroll requires a human touch, and there are numerous benefits to having a payroll accountant, outsourced or on staff, to oversee your payroll.

Spend the Time Where it Matters

As a small business owner or a solopreneur who uses independent contractors, you probably consider payroll a big headache. Even if you rely on payroll software, you still have to invest a significant amount of time in payroll administration. And the reason is that no software within your budget can provide the hands-free payroll management you need. When you work with a payroll accountant, you can finally transfer all these administrative tasks to a person who is qualified to perform them (and who loves their job!) So now you can focus on important matters, such as networking and developing business strategies, instead of getting caught up in small, repetitive tasks.

Don’t Worry About a Thing

Payroll is closely integrated with accounting, especially when it comes to income statements and balance sheets. Payroll is a business expense, as well as a tax liability, so it needs to be carefully calculated, properly recorded and correctly distributed. Hiring a payroll accountant will eliminate these and many other headaches, including but not limited to:

• Calculating salaries, wages, bonuses and commissions
• Collecting payroll taxes
• Delivering employer-paid fringe benefits
• Filing the required paperwork on new hires
• Processing payroll for independent contractors
• Setting up direct deposit
• Providing detailed wage reports

Avoid IRS Penalties

If you have incurred IRS penalties before for late or incorrect payroll tax filing, you know the feeling. In 2014 alone, the IRS assessed close to 7 million employment tax penalties totaling around $5 million. The majority of these penalties had to do with delinquency, failure to pay and federal tax deposits. It’s worth getting professional payroll help, especially if you are just starting your business. You will recoup your investment soon enough with all the money you save from avoiding penalties.

Find Additional Savings and Options

As a first-time founder—someone who is inexperienced in payroll—you may not be aware of some of the options and hidden savings you could take advantage of. For example, you may not know how to properly expense the vacation pay before it gets used. Having an experienced Maryland CPA you can always call with questions is invaluable when you are running a business. It will save you hours of online research and help prevent underpaying or overpaying your employees.

Keep up With the Legislation

Tax tables and tax legislation change all the time. If you don’t keep up and adjust your payroll accordingly, you are in for an unpleasant surprise when tax time comes. It’s nice knowing you don’t have to worry about checking with the laws or spending hours trying to find the right setting you need to change in your payroll system. And as someone whose job is to be up to date on tax legislation, we can tell you it’s not something you want to be doing at your leisure.

Have questions about payroll or accounting in general? Get in touch with Relate CPA today and talk to an experienced Maryland CPA and payroll expert.