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Why do businesses choose to outsource their payroll and how much does it cost?
Businesses do not have the time. Outsourcing payroll allows a company’s staff to focus their time where needed most. Whether providing customer service to clients, managing the affairs of the business, or spending valuable time with their families.
Businesses do not have the expertise. Just about every business will deal with at least four tax agencies and determining how an item is taxed or reported can be very time consuming. Most businesses are not knowledgeable of the compliance issues or on-top of the latest ever-changing laws. A simple error can be costly to a business because of penalties and interest and significant time can be spent in correcting reports already filed.
Payroll Penalties & Interests are costly. Payroll penalties and interest are frequently assessed on businesses. The U.S. Chamber of Commerce indicates that 1 out of 3 businesses will pay a tax penalty each year. It is also said that the IRS reports that 40% of all small businesses pay an average of $845 per year for late or incorrect report filings. Sometimes it takes several months before the IRS notifies a business of a problem and penalties and interested are calculated from the date of the problem not the date of the notice. These costs can be eliminated if a payroll professional handles your payroll.
Outsourcing Payroll is more cost effective. Paying staff to process payroll and keep up to date on ever changing payroll laws is costly and takes valuable time away from producing income.
Businesses need assistance with Employee Benefits. There are several ways to offer benefits to employees that will increase their overall compensation and at the same time save the company money. Understanding these options is necessary and most businesses do not have the time to research or implement such benefits.
Security & Confidentiality. Payroll information is confidential and sensitive and when not properly secured can create employee problems. Keeping payroll information in a secure, off-site location and providing nightly back-ups ensures data is never lost and sensitive information is kept confidential.
Complete Payroll Processing Cost:
Frequency Cost Per Payroll*
Weekly $48
Bi-Weekly $58
Semi-Monthly $58
Monthly $68
Services Included in Cost per Payroll:
- Multiple options for submitting hours
- Direct deposit
- Detailed reports
- Weekly, monthly, quarterly & annual payroll report preparation and filing
- Tax liability preparation and remittance
- W-3 and W-2’s
- Garnishment calculations
- New hire reporting
- Third party reporting and payment calculation for retirement and cafeteria plans
- Workers compensation insurance tracking and reporting
- Labor distribution tracking
- Customized journal entry
- Benefit accruals
- Multiple earnings and deductions
Set up Fee:
$200 - New Employer Setup.
Includes completion of Federal, Local, State & Workers Compensation
applications. Completion of company information on employee forms W-4, I-9
and New Hire. Set up and registration for online processing of tax payments
with IRS, local, state, unemployment division and workers comp.
New Employer Forms for Federal and Montana include:
- SS-4 (Application for EIN)
- MT GenReg (MT General Registration Form)
- MT UI-5 (MT Unemployment Insurance Employer Registration)
- MSF Form 100A (MT Workers’ Compensation Insurance Application)
- New Hire Reporting
- Form I-9 (Employment Eligibility Verification)
- Form W-4 (Employee’s Withholding Allowance Certificate)
No Charge for Existing Employer Setup.
Enter and reconcile year-to-date payroll for existing companies.
*All prices based off 1-10 employees per payroll. Please contact us
for payrolls with greater than 10 employees for a quote.
Additional Services Offered:
Employee Benefit Recommendations; General Ledger Set-up; Time and
Attendance Solutions; Federal, Local, State & Workers Comp audits, Human
Resource Assistance, Structuring and setup of Employee Agreements, Manuals,
Policies & Procedures; Custom Reporting for general ledger and payroll; and
completion of year-end Forms 1099.
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