Do you have a lot of medical bills that you pay on each month? Could those medical bills be deducted from your tax bill this year? I was helping my mother take care of all of her finances after my dad passed away. I didn't realize how many bills she had coming in each month for medical treatments that my dad had undergone months, even a year earlier. I started doing some research about medical bills and tax deductions. If you have medical bills, take a minute to read through this blog to gain some knowledge that can help you decide what you can do when tax time comes around.
Business owners have a ton of tasks on their plates. They are responsible for everything from making sure there is enough inventory to employing the right people. Many of these tasks can be outsourced or delegated to ensure the business owner does not get too overwhelmed. Payroll is a large task that all businesses have to deal with when they hire employees. It can be very confusing for those who are inexperienced in payroll processes. With the laws changing all the time surrounding taxes and wages, the task of payroll processing can require a lot of work. Additionally, you could encounter large fines from the government if done incorrectly. This is why many business owners choose to outsource their payroll. Here are some reasons why you should consider doing it as well.
Frees Up Time
As a business owner, you have a lot to worry about. If you can outsource something that is taking too much of your company's time, it can be worth the investment. This leaves you and your employees to focus on what your skills are best matched up with. Additionally, you do not have to worry about hiring someone specifically for payroll processing. Instead of hiring someone to handle just one job, it is always a good idea to have someone with multiple skills so you can utilize them in various areas. Since payroll can be so time consuming, your employee may not have time to work on other jobs. When outsourcing the payroll, many payroll processing companies do all the legwork for you so all you have to do is sign into a portal and its all ready.
Saves You Money
It is always a good idea to have a certified public accountant handle your payroll. Hiring a CPA can be very expensive as the average annual salary for a CPA runs about $73,800. For a fraction of the cost, you can hire a payroll processing company to handle your payroll tasks. As a result, you could put the savings back into the company to help you grow your business.
Avoid IRS Fees
About 40% of businesses incur an average of $845 a year in penalties from the IRS for improper payroll processing. This can accumulate into quite a bit of money and create a hardship on a business that is already struggling. With the tax and payroll laws constantly changing, you could end up doing your payroll wrong without even knowing it. Staying on top of the laws can be very time consuming and requires a lot of continuing education. When you outsource it to a payroll processing company (such as Waggoner Frutiger & Daub CPA's), you can skip the continuing education courses and feel confident they are handling your payroll according to the law.
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