There is a reason that 85 percent of certified public accountants recommend small businesses use payroll outsourcing. Having independent payroll accounting is just simpler. With payroll accounting services, businesses ensure standards of security, quality and continuity are in place, and are followed every time. A payroll accounting service can also help small businesses navigate the messy world of labor laws.
What labor laws can small business payroll services help with? FICA taxes are a major one, as employers do not know exactly what to pay. Restaurants, for instance, have tipped employees, and are eligible for a FICA tax credit. Services like the Paychex FICA Tip Credit Report contains data on implementing the credit.
Another service payroll companies can provide is labor law compliance. Often, these companies have automated time and attendance systems that accurately account hours. Using this for payroll accounting leaves objective evidence of labor law compliance.
Finally, there is COBRA. All businesses over 20 employees must offer COBRA after a qualifying event, and yet that qualifying event is hard to determine. A payroll accounting service can sort that out, among other labor and payroll disputes and controversies.