If you have been asking yourself “Do I need a business payroll service for my business?” here is the quick answer: yes you do! Unlike what it seems like, payroll isn’t an easy task of just paying your staff. It involves several other factors, including paying taxes and complying with various state and federal laws. This can be complex and tedious work for any business, which is why small business payroll services can be so helpful.
Businesses must consider several factors when calculating their payroll taxes. The first is the total cost, which includes the federal income taxes, Social Security taxes, Medicare and unemployment insurance. The second is the amount of overtime pay that the employees receive. Finally, there are other miscellaneous costs that businesses may not even think about. These include but are not limited to, materials and supplies, property, equipment, utilities, insurance premiums, marketing and advertising expenses, and the full value of terminated employees’ benefits. All of these cost estimates vary from one business to another, which is why it’s important for employers to get an estimate from an expert.
There are a variety of ways that payroll can affect businesses. In addition to federal income taxes, businesses must also take into account local, state and city taxes and possibly even franchise or franchises taxes if they are purchasing real estate. All of these things add up and can often make it difficult for an employer to know exactly how much to make their employee pay. If you need help calculating the right amount or preparing the payroll taxes correctly, contact an employee finance professional to make sure your calculations are correct.