Why stay on top of payroll taxes?
It should go without saying that paying payroll taxes on a regular basis is important right? Despite the seemingly obvious necessity of this task, it is actually one of the most common mistakes we see business owners make when it comes to their finances!
Staying on top of your payroll taxes is beneficial not only when it comes to your relationship with the IRS, but also with your relationship with your employees. Keeping the company, and its employees, above board and in good standing with the IRS is a necessity for businesses wanting longevity.
How often should I submit my payroll taxes?
Unsurprisingly, the IRS isn’t flexible when it comes to payment schedules for payroll taxes. Businesses must pay with each pay period, at the end of each month, or quarterly. Each business is different, check with your bookkeeper to ensure the schedule you choose is the right one to prevent getting behind or paying a penalty fee.
Falling behind on payroll taxes opens your company up to a payroll audit which can lead to damaging penalties as mentioned above. While making these payments is money coming out of your pocket, it is saving you money in the long run!
Employee peace of mind
Since good employees aren’t always easy to find, holding on to them once you find them is something that is of the utmost importance! One easy and simple way to make sure employees feel comfortable is to make them feel secure. Getting paid on time and knowing their payrolls taxes are taken care of is an easy first step in employee retention.
If an employee doesn’t even trust their employer to pay their payroll taxes on time it can quickly erode a relationship and lead to them looking for a new position. In many cases perception is reality and in this case, the perception can range from the company not caring enough about them to take care of this seemingly simple task; to wondering if the company is in financial trouble and can’t afford payroll taxes. Don’t leave room for your employees to wonder, just pay on time!
Keeping it simple
As a business owner, you have a long enough list of tasks to worry about monthly. Is there any real benefit to taking on payroll and payroll taxes yourself rather than outsourcing to a partner like Dietz Consulting? Maybe you save a little money, but time is money, and your time is valuable. Rest easy knowing that a professional has this taken care of and let yourself focus on growing your business!