One of the benefits that PEO Clients often take for granted is the professional payroll services that are include in the PEO’s offerings. These services can range from Payroll Processing, Garnishment, Deductions, & Benefits processing and payments, to the more complicated Certified Payroll and managing Prevailing Wage. Of course, payroll tax calculations and payments can often be equally complicated.
An efficient payroll process is crucial to the success of any small business and maintaining employees. With limited resources and time available for this non-revenue generating activity, business owners frequently find themselves facing significant headaches when it is time to process payroll. According to Quickbooks, 35% of business owners say that payroll is the issue that concerns them the most. Some of those headaches include:
· Time: How can a business owner efficiently manage the payroll process when they are constantly on the move or working on site? After all, they have a business to run! Payroll processing takes the average small business 4 hours and 52 minutes every week. That is 21 days each year!
· Accuracy: 54% of the American workforce (82 million people) are impacted by payroll issues. The American Payroll Association (APA) states that up to 8% of timecard entries contain errors. These errors are costly, it’s estimated that 35% of HR employee’s time is dedicated to payroll and error correction.
· Cost: Whether it is paying for an in-house bookkeeper or using your valuable time, payroll always carries a cost. The APA says roughly 40% of businesses incur additional cost in the form of IRS penalties, an average of $845 a year, due to errors.
· Complexity: How do you manage certified payroll reporting requirements or prevailing wage? How do you accurately tie payroll to job costing so you can maximize profitability? How do you adjust your payroll process to comply with the newest tax guidance from the IRS? How do you manage multiple vendor payments for garnishments?
· Compliance: Keeping up with the guidelines related to filing federal, state, and local taxes can be dizzying for business owners. Filing deadlines are always changing and determining which local and state taxes an employer is obligated to pay is no easy task when opening the 6,500+ page IRS tax code. The IRS watches employers closely, ready to levy fines of 15% of gross payroll for failure to deposit and a 5% penalty for each month your tax bill is unpaid. Employers are also liable to be penalized by states for failing to comply with garnishment orders. Some states fine up to $1000 for a single missed payment.
· Benefits Administration: How do you keep and retain top talent? Do you have the resources to accurately and efficiently monitor the benefits that you are offering your employees currently? Are you properly tracking eligibility and compliance with ACA, HIPPA, COBRA, etc.?
Feeling stressed out? It may be time to allow CornerstonePEO to step in so you can focus on what has made you successful. Cornerstone PEO can help with:
· Time: Let CornerstonePEO lift the administrative burden of payroll by providing an automated, cloud-based payroll solution. Automation gives business owners peace of mind that payroll is always accurate and timely, not necessitating manual calculations. With Cornerstone’s cloud-based software application, employers can even report payroll from their phone wherever they have cell service!
· Accuracy: With Cornerstone’s payroll software and team of experienced payroll professionals on your side, you can be sure that your payroll will be accurate. If there is an error, it can be corrected with the click of a button and will no longer require long hours to adjust.
· Cost: The APA has found that automation reduces payroll costs by up to 80%. Partnering with Cornerstone eliminates any unforeseen payroll expenses. When that is coupled with the reduction in fines and penalties, CornerstonePEO more than pays for itself with many businesses.
· Complexity: CornerstonePEO provides certified reports, prevailing wage management and job costing at no additional cost to clients. Our customized reporting feature ensures clients can leverage all payroll data in business decisions. Have a payroll question or need a custom report? Pick up the phone and give your dedicated client service representative a call! It really is that simple.
· Compliance: Let the experts at Cornerstone ensure that you are tax compliant as your business grows. With Cornerstone automating payroll, taxes and garnishment processes, business owners can fully focus on revenue-generating activities. According to QuickBooks, 31% of business owners say this peace of mind is the greatest benefit of outsourcing payroll.
· Benefits Administration: Attract and keep top talent by offering them a wide range of benefits including health, dental, vision and voluntary benefits as well as 401k plans! With the help of our benefits team we can help manage your benefits offerings and make sure your employees have access to the benefits that they, along with their loved ones, need.