Payroll services may be available through your bank or financial institution, or through an independent payroll services company. Trusting a reputable payroll vendor to take over paying your employees will remove a lot of hassle for you as a business owner.
A payroll service cuts checks for your employees and withdraws the right amount of funds from your accounts. It may also electronically sign your checks. It also automatically figures payroll taxes and ensures that the correct amounts for federal and state taxes are taken out of your employees' paychecks.
When you work with a payroll service, you can rest assured that your business is in compliance with the tax laws. You can also receive electronic reports and other communications that help you manage your payroll and human resources needs.
You may wonder whether outsourcing your payroll is worth the cost, particularly if you only have a few employees. Keep in mind that the IRS imposes high penalties for incorrectly reporting payroll taxes or missing a payment. The risk of incurring penalties from an error or oversight on your part is most likely much higher than the cost of just one year of payroll outsourcing. Plus, using a payroll service means you will spend less time and energy managing payroll so you can focus on other areas of your business.