Are you running a small business in Minneapolis, Minnesota? If so, you may have experienced how big a headache it can be to handle payroll.
Contrary to popular belief, running a small business with less than 10 employees has its share of hassles. One of them being administrative tasks like payroll management. From calculating the last cut-off’s pay to dealing with contributions or taxes, the details never end.
For this reason, the average business owner can spend as much as five hours per pay period working on payroll. No matter what your pay period frequency is, this is a significant amount of time and could be used doing something else for your small business. So, “yes!” You do need a payroll service for your small business!
As a business owner, you deserve better than to get bogged down with administrative tasks. You need the aid of payroll services for small businesses in Minneapolis, MN.
To see exactly why you need payroll services for small businesses in Minneapolis, MN, keep reading!
Being a business owner means dealing with customers. Handling staff and the creative side of your venture also comes with the territory. Needless to say, it takes a lot of time, effort, and psychological bandwidth to run a business, even a small one in Minneapolis.
Being a business owner indeed means being on shift around the clock. Even though you effectively have most of the day to perform tasks, there is room for efficiency. Getting bogged down with administrative tasks takes you away from doing what you should be doing — running a business.
Accounting and working on your employee payroll are a task that can take you a long time, whatever the size of your company. The simple operation of ensuring that your employees receive the right payment on time can take hours.
Having a payroll service for a small business in Minneapolis, MN can be a great investment. A payroll service makes your job easier. And it also allows you to dedicate your time and energy to the things that matter.
Owners of small businesses often go into entrepreneurship underestimating what is involved. The small size of a business can provide the impression of ease, especially with only a handful of employees.
It’s tempting to think that payroll involves merely ensuring the right amount makes it to your employee’s bank account. While this is true, there are other numbers that require crunching alongside employee compensation.
For example, there is payroll tax. A survey discovered that most small businesses lack a payroll system that accounts for proper payroll tax deductions. Income taxes are deductible and are based on a percentage of your employee’s gross income.
Calculating the right amount to pay to the Internal Revenue Service is cumbersome on its own. With more than a handful of employees and changing tax regulations, payroll becomes as much a full-time job as marketing is.
In addition, as an employer, you are also responsible for providing certain employment benefits. One example is paid sick leave. This too needs to be factored into an employee’s compensation. Whether on a monthly or yearly basis.
In short, there is more to payroll than just paying your employees. With the number of calculations required, you will need the help of a professional. In particular, payroll services that cater to small businesses like yours can help you stay on top of payments, deductions, and benefits.
When it comes to fines and penalties, we’re talking about one government agency. The Internal Revenue Service (or IRS). The IRS regularly collects taxes from small businesses like yourself, regardless of the state.
Small businesses are often guilty of failure to pay the right amount of income tax for their employees. Part of this has a lot to do with the improper or incomplete filing of certain forms.
Some examples of these forms are the W2 and W4 forms. These forms can give the IRS an idea of how much your employee makes. The W4 form, in particular, determines the amount you can withhold from an employee’s wages as income tax.
For even a handful of employees, managing taxes and concurrent deductions can be tricky. File improperly or make a tax payment late, and the IRS will impose the required penalties on you.
No business wishes to be fined, especially during an off-season where profits are few and far between. A payroll professional can help you avoid this by taking over the bulk of your accounting duties that involve compensation.
A small business payroll service can help you pay your employees on time and handle the necessary bits and pieces for the taxman.
You can think of payroll as an operation in your business. It’s an operation that demands your full attention as you calculate the right amount of pay for each worker. As mentioned earlier, working on payroll can take up a lot of your time. Perhaps, the time commitment is something you think you may be able to take on the chin if you have an employee or two.
A DIY approach to payroll can work but it is risky and potential mistakes may end up costing you more than outsourcing your small business payroll. One common misconception on hiring a small business payroll company is that the owner will no longer directly oversee the wages and contributions of their employees. In addition, as you continue to hire employees, you will need a well-established system that can do payroll for you. And, for a small business, the level of automation required can either be costly or too technical to establish on your own.
A payroll service that caters to small businesses already has such systems in place. Hence, your best bet would be to delegate payroll to such a service. You will still have control of the process while at the same time you will be mitigating risk. Doing this takes the guesswork and hassle out of handling the accounts of a growing number of workers.
A payroll service for your small business in Minneapolis, MN can help you in several ways.
First, a payroll service allows you more time and energy to dedicate towards the more crucial parts of your business. By taking on your payroll, a payroll service allows you to interact with customers and develop your business further.
A payroll service can also handle the calculations necessary to ensure proper and lawful compensation for your employees. In doing so, a payroll service helps you avoid penalties and fines from the IRS.
By having the necessary systems in place, a payroll service can handle your employee’s wages and deductions. Even as your business grows, you can leave payroll in the capable hands of professionals that can ensure you more time for your business.
In short, you need a payroll service for your small business. If you are in Minneapolis, MN, ICOMP is your one-stop-shop for payroll and human resource solutions.
Give us a call and experience payroll solutions in which you can entrust your business!