There are many things that must be taken into account when performing payroll functions. Considering your answers to a few basic questions can help you decide if you should keep them in-house or contract them out.
Are You Familiar With Employment Laws?
Unless you are well versed with the Fair Labor Standards Act (FLSA), not to mention any local rules, you may not be aware of everything your business must keep up with to stay in compliance with labor regulations. These cover everything from withholding requirements and garnishments to age and hour restrictions.
Can You Keep Up With Changes in the Tax Code?
In addition to labor rules, you will also need to stay on top of changes to the tax code that may affect your business and its employees. The United CPA Association can put you in touch with a professional accountant who can handle those changes for you.
Would Your Time Be Better Spent Somewhere Else?
The variety and number of tasks you must complete when running a small business can quickly become overwhelming. If payroll and tax calculations are going to take away from critical functions, it might the better for you to hire those services out. This way you can focus on what you do best while a professional can make sure the company’s payroll is in order.
No one says you have to do everything yourself when running a small business. It is best to decide upfront if you can handle the added burden of payroll, or if you would be better served outsourcing it to a professional.