When operating a small business, there are many options available to you for processing payroll. Determining which is best for you depends on how comfortable you feel handling payroll, how much money you want to spend on it, and the level of control you want over your business’s payroll. Following are the primary payroll processing options available to a small business, and the pros and cons for each.
Hire a Professional for Payroll Processing
You can always outsource your payroll to an accountant or service company. The Harding Group accountants are experienced with small businesses and ready to help guide you through the process. For this option, you supply data to the account or company, and they process payroll for you.
- Payroll processing is done for you
- You have more time to focus on your business
- Your payroll is in expert hands
- Hiring a professional can be expensive
- You are not in total control of your payroll
- You miss out on building payroll skills
Use a Payroll Processing Software
You can use either online or desktop payroll software. Both programs calculate payroll and taxes and allow you to print checks or use direct deposit. Online programs store your information in the cloud and can be accessed anywhere with an Internet connection. A desktop program needs to be installed on a computer and can only be used from that computer. It stores data in your computer’s hard drive.
- Payroll processing software can save you time and money
- Some payroll software offers special services or features
- You are in control of your payroll
- There may be a learning curve
- You are in charge of protecting your information
- You might forget a payroll tax payment
Payroll Processing By Hand
The government provides business owner’s with free tax tables that you can use to calculate payroll. The IRS’s Publication 15 (Circular E) can help you process payroll. However, you are fully responsible for the accuracy of your payroll.
- The cheapest payroll processing option
- You have total control of your payroll
- Payroll processing by hand is time-consuming
- Your accuracy may be off
- You are responsible for staying up to date with payroll tax changes
trust the professionals at the harding group
Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for emails or phone calls and will strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping and accounting, payroll services, Training + support for QuickBooks, or retirement planning, we have the expertise and years of experience to help. We serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of taxes, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, YouTube, and LinkedIn.