By Dale Shadel, CPA and Business Consultant, Payroll Specialist

Small business owners wear many hats.  Payroll should not be one of these hats.  Laws, tax rates, and due dates are constantly changing.  The Penalties for “failure to pay timely” can become expensive.  The Internal Revenue Service charges a 2% penalty for paying employer taxes one day late.  These penalties quickly grow and compound.  We have dealt with clients who have fallen behind in these payments.  It is a difficult hole to climb out of! It is costly to get back in compliance with the Government.

Never, Never borrow from your payroll taxes to meet other obligations.  The “willful failure to pay” penalty can be 100% of the Tax owed and the Internal Revenue service can also access a 100% Responsible Officer penalty.  Loan Sharks charge excessive interest, but not usually 300%.  The loan shark may break your arm, but The Internal Revenue Service has the power to seize your Bank Accounts and Assets. 

Why not use one of the popular accounting programs and do payroll yourself?

We helped a small business set up their payroll.  We filed the paperwork to open their State and Federal payroll tax accounts and had their payroll up and running efficiently.  We had also helped them set up their books with a popular accounting program, but when you are operating a small business you time is at a premium and it is easy to miss due dates and tax deadlines. Even with the reminders from the accounting program, that taxes were due, they were late on paying their payroll taxes.  The penalty and interest cost them more than our payroll service fees would have been.

The client still seemed determined to “try to save money” by continuing to do the payroll themselves and have us pay and file the taxes the monthly and quarterly taxes so they would be made on time. This worked well for several quarters.  Once comfortable with doing the payroll they decided that they were now be able to take on the tax obligations themselves.  Once again, due to the demands of the business, payroll taxes were overlooked and not paid on time.  Dealing with tax notices, paying the penalty and interest is time consuming and costly. No small business should do their own payroll!  Let us handle these obligations for you so that you can focus your time and energy on what you do best, growing and managing your business.  We know payroll, we have been doing it for over 30 years, we can help you.  For a reasonable price, you can free yourself from the worry and hassle of payroll compliance.

You started your small business because you wanted to be in control.  You are the boss, you decide the course your business will take.   We can handle your payroll compliance and preparation, saving you time and energy to focus on running your business.  But you will still be in control of the process.

The large national payroll service providers use a trust fund.  You pay them a check for the amount of your payroll and taxes and they pay the employees and file the taxes for you.  There are many stories of payroll service providers paying the Employees, but not paying the Taxes.  The Employer will not find out for several years, by that time the amount of tax and penalties due will most likely lead to the closure of the business. We take a different approach.   We want you to be in control of your payroll.  We prepare the employee checks or direct deposit for you and file and pay all of your payroll taxes. The money comes out of your account, you sign the checks, you are still in control of your payroll and you can monitor these payments coming out of your bank account.

We keep up with the due dates and preparing the checks and tax forms, but you sign the pay checks. You sign the payroll tax forms and you can monitor these payments on your bank statements.  Years ago, I took an accounting job with a small business.  They were using one of the large national payroll firms to prepare their payroll taxes.  They thought that the payroll firm was filing and paying all of their taxes.  Since I was new, I asked questions to find out how things were handled.  The payroll firm had been paying the employees, but the company had not opted for the service for them to file and pay the payroll taxes.  They did not know these taxes were not being paid, as they only made one payment to the payroll service.  The tax notices would have went directly to the payroll provider.  The employee checks and payroll taxes would clear in the payroll service provider’s bank account.   That is why we take a different approach and keep you in control, you can see that these tax payments have been paid.  Any tax notices come directly to you, so you would know if there is a problem.

It is important for you to focus on your core business goals, we can help you do this through the personal and trustworthy services we offer.

Small business owners wear many hats.  Payroll should not be one of these hats.  Laws, tax rates, and due dates are constantly changing.  The Penalties for “failure to pay timely” can become expensive.  The Internal Revenue Service charges a 2% penalty for paying employer taxes one day late.  These penalties quickly grow and compound.  We have dealt with clients who have fallen behind in these payments.  It is a difficult hole to climb out of! It is costly to get back in compliance with the Government.

Never, Never borrow from your payroll taxes to meet other obligations.  The “willful failure to pay” penalty can be 100% of the Tax owed and the Internal Revenue service can also access a 100% Responsible Officer penalty.  Loan Sharks charge excessive interest, but not usually 300%.  The loan shark may break your arm, but The Internal Revenue Service has the power to seize your Bank Accounts and Assets. 

Why not use one of the popular accounting programs and do payroll yourself?

We helped a small business set up their payroll.  We filed the paperwork to open their State and Federal payroll tax accounts and had their payroll up and running efficiently.  We had also helped them set up their books with a popular accounting program, but when you are operating a small business you time is at a premium and it is easy to miss due dates and tax deadlines. Even with the reminders from the accounting program, that taxes were due, they were late on paying their payroll taxes.  The penalty and interest cost them more than our payroll service fees would have been.

The client still seemed determined to “try to save money” by continuing to do the payroll themselves and have us pay and file the taxes the monthly and quarterly taxes so they would be made on time. This worked well for several quarters.  Once comfortable with doing the payroll they decided that they were now be able to take on the tax obligations themselves.  Once again, due to the demands of the business, payroll taxes were overlooked and not paid on time.  Dealing with tax notices, paying the penalty and interest is time consuming and costly. No small business should do their own payroll!  Let us handle these obligations for you so that you can focus your time and energy on what you do best, growing and managing your business.  We know payroll, we have been doing it for over 30 years, we can help you.  For a reasonable price, you can free yourself from the worry and hassle of payroll compliance.

You started your small business because you wanted to be in control.  You are the boss, you decide the course your business will take.   We can handle your payroll compliance and preparation, saving you time and energy to focus on running your business.  But you will still be in control of the process.

The large national payroll service providers use a trust fund.  You pay them a check for the amount of your payroll and taxes and they pay the employees and file the taxes for you.  There are many stories of payroll service providers paying the Employees, but not paying the Taxes.  The Employer will not find out for several years, by that time the amount of tax and penalties due will most likely lead to the closure of the business. We take a different approach.   We want you to be in control of your payroll.  We prepare the employee checks or direct deposit for you and file and pay all of your payroll taxes. The money comes out of your account, you sign the checks, you are still in control of your payroll and you can monitor these payments coming out of your bank account.

We keep up with the due dates and preparing the checks and tax forms, but you sign the pay checks. You sign the payroll tax forms and you can monitor these payments on your bank statements.  Years ago, I took an accounting job with a small business.  They were using one of the large national payroll firms to prepare their payroll taxes.  They thought that the payroll firm was filing and paying all of their taxes.  Since I was new, I asked questions to find out how things were handled.  The payroll firm had been paying the employees, but the company had not opted for the service for them to file and pay the payroll taxes.  They did not know these taxes were not being paid, as they only made one payment to the payroll service.  The tax notices would have went directly to the payroll provider.  The employee checks and payroll taxes would clear in the payroll service provider’s bank account.   That is why we take a different approach and keep you in control, you can see that these tax payments have been paid.  Any tax notices come directly to you, so you would know if there is a problem.

It is important for you to focus on your core business goals, we can help you do this through the personal and trustworthy services we offer.

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