We all make mistakes, but when you’re running a business, it’s best to dot all your I’s and cross all your T’s when it comes to payroll — because mistakes can be costly. The Internal Revenue Service (IRS) levies penalties to businesses that don’t meet guidelines, while disgruntled employees are not good for your business either. One way to avoid a lot of common mistakes is to invest in professional payroll services. Let’s take a look at the many ways hiring a professional payroll service like Gibson Edwards Tax & Accounting can save you time, money, and headaches down the line:

1. Improve your productivity

If you are struggling to find time for important business processes that keep your company afloat, payroll services may be the right option for you. By outsourcing your accounting and bookkeeping to Gibson Edwards Tax & Accounting, you free up your time for activities that improve the company and spur your own innovation.

2. Make your deadlines

One of the most common payroll mistakes is missing federal deadlines. It’s imperative to mark your calendar and make sure you don’t forget any of these. There are penalties associated with failing to pay payroll taxes — usually, a percentage of the tax amount that you were supposed to pay, depending on how many days late the payment is made. Professional payroll services will help you keep your ducks in a row. Best of all, you won’t forget to send payments to the IRS — because it’s someone else remembering to do it for you!

3. Tax expertise

Taxes can be confusing, and when you own a business, that confusion can make or break your company. Payroll services can assist you in knowing what forms to file, keeping detailed records of your numbers, and helping you navigate the sometimes choppy waters of the tax code. For instance, the 2020 CARES Act allows businesses to take advantage of loan forgiveness and other important financial incentives for hardships that occurred thanks to the COVID-19 pandemic. A professional payroll service will know how that affects your tax code.

4. Keep employees happy

Having incomplete or sloppy pay records can be a headache for your employees. When it comes time for them to do their own taxes, your records need to be up-to-date and easily accessible. If not, you run the risk of eroding your employees’ trust. Document retention and record-keeping, therefore, are critical for several parts of your business — payroll being one of them.

5. Be in the know

There are many regulations that companies need to follow, and rules surrounding payroll (both state and federal) can be among the most important. For instance, if your company is a limited liability company (LLC), you need to make sure you have applied for an employer identification number (EIN) before you start hiring. Many states also require LLCs to obtain an additional number to apply to their state taxes. The benefits of forming an LLC (including tax advantages, more flexibility, and professional asset protection) are worth it, but you need to make sure you check with local guidelines since states have different regulations around forming an LLC. Avoid lawyer fees by using a formation service and letting professionals do the work for you.

Investing in professional payroll services is an easy way to make sure your successful business is taking the right precautions when it comes to hiring and retaining full-time employees and contractors alike. Are you ready to take advantage of increased productivity, maintain your employee satisfaction, and make sure you don’t miss any deadlines? Get in touch with Gibson Edwards Tax & Accounting today.

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