As a business owner, December is a key time to assess your business solutions and strategies and to consider how they can be optimized in the new year. From year end bookkeeping to profit-and-loss statements, there’s a lot to analyze in the midst of the busy holiday season. But there’s a business operation you might not be evaluating—payroll.
Payroll is an integral part of your business operations but can also be detrimental to your business’s financial health if it isn’t handled properly. IRS statistics show that roughly 40 percent of small businesses pay over $845 a year in payroll penalties. There’s no question having the right payroll provider can impact your business, but it can be difficult to know if your current payroll process is covering your needs.
If you’re not sure if your business is ready to switch payroll providers, read on to learn how you can analyze your current payroll system, find a payroll solution that fits your goals, make the jump, and be ready to roll on January 1. The new year will be here soon, but there’s still time to transition to the payroll solution that’s right for you.
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1. Evaluate Your Payroll Process
Take a step back and figure out how much time and money you are spending on payroll. If you’re still doing manual spreadsheet calculations to pay your employees or relying on a binder to organize important tax information, it’s time to switch. Businesses that outsource payroll save 18% over businesses that tackle it themselves. Besides cost savings, you’ll avoid unnecessary mistakes, which are twice as likely to occur with homegrown payroll solutions. If your business is already outsourcing or leveraging an online payroll platform and you’ve experienced a processor mistake or lack of service with your current provider, it might be time to find a platform that better fits your business needs.
2. Find a Payroll Platform That Suits Your Business
Payroll isn’t just about paychecks anymore. As you consider new providers, look for online platforms that handle everything from payroll, to human resources, tax compliance, time and attendance, PTO management and even benefits administration. Online payroll software can handle all of the complex HR tasks a traditional payroll provider does, but without the prohibitive costs or loss of control of a full-service partner. Professional Employer Organizations can cost up to 6% of your total payroll, which is too large an amount for many small to midsize businesses. Beyond Payroll is a cost-effective, easy-to-use online tool that’s powerful enough to manage the entire employee life cycle. Choose the services that work best for your business now and enjoy the scalability to upgrade as you grow. Pay your employees as often as you want, at no additional cost to you.
3. Make the Jump—It’s Easy
Switching payroll systems doesn’t have to be complicated but many providers make it difficult. With Beyond Payroll, it’s simple and fast. Speed up your onboarding process by having your business information handy—employee data, voided check or bank account details, and your Federal Employer Identification Number (FEIN). After closing your account with your old provider, make sure to save copies of all your information—tax forms, reports, etc., as your old processor may block you from seeing these after your account has closed. With an onboarding process that takes less than an hour, Beyond Payroll gives you all the support you need to get your new system up and running on the same day.
4. Simplify Your Year End Taxes
Avoid the hassle of collecting tax information from two different providers by making the switch before the start of 2019. Did you know that if you’re paying your employees for a pay period from December 2018 in January of 2019, that pay period will be reported on your 2019 taxes? Payroll taxes are based on when the employee is paid, not when the employee worked, so solidify your payroll system before January 1 to avoid complicated tax forms.
If you’ve been thinking about upgrading your payroll and employee management systems, now is the time to take action. Switch to Beyond Payroll today, and you’ll be met with outstanding service, a superior product and a commitment to transparency. Better yet, we’ll quickly onboard you so you’re ready to hit the ground running on January 1. Contact us to learn more about our intuitive payroll and HR platform today.