Payroll Services

One piece of advice I give consistently to small business owners, even those with only two or three employees, is to engage a payroll processing service. Why? I’ve seen way too many small businesses get into serious financial difficulty by failing to file quarterly tax returns on time, and worse, not making payroll tax payments when they are due. As trustees of taxes withheld from employee paychecks, employers are obligated to timely and properly deposit these taxes. The IRS and other taxing authorities can impose not only interest but severe penalties when taxes are not deposited, and they can go after the owner and anyone else who may have the authority and responsibility to make the tax deposits.

So how is this problem solved with a payroll service, such as Ahola or ADP? The payroll service makes the deposits and files the tax returns. An established and reputable service can be counted on to make all the filings when required. The payroll processing fees are well worth the peace of mind and will most likely be less than the costs of late filings or deposits.

The small business owner needs to keep track of countless details. Delegating payroll-related details is just smart.

Will Limkemann