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How a Payroll Services Provider Helps Your Company

Happy woman smiling at desk holding a calculator and pencil. (Complete Guide to Payroll for Small Businesses - Guidant Financial.)

Some small business owners try to do payroll themselves. It may seem simple, especially if they have one or two employees. But this guide proves that payroll can be complex.

When it comes to managing payroll, many moving parts and decisions must be made.

Perhaps most importantly, many laws, rules, and regulations must be considered with payroll — and it can be challenging to even know all of them. Not only that but all these laws and regulations are subject to change, as are other key factors such as tax.

Payroll service providers can help handle a number of tasks such as calculating employee pay, accounting for deductions like taxes and social security, and issuing payments either via direct deposit or checks. Additionally, these providers often manage related financial records, ensure compliance with tax laws, and sometimes offer related services like employee benefit management and tax filing assistance.

All of this and more is covered by Guidant Payroll. Unlike other payroll providers, our services are specially tailored for supporting small businesses.

Our team of experts take the time to educate you on payroll and ensure your payroll is done accurately, conveniently, and on time. Choosing Guidant Financial for your payroll needs benefits your business in ways above and beyond the realm of standard payroll processing. With Guidant Payroll, you can…

1. Save Time and Money

What sets Guidant Payroll apart from other payroll providers is our full transparency. That means no hidden or expensive add-ons. Our team is dedicated to saving you both time and money with our streamlined, essential services that cater exactly to your business’s needs — and help lessen the administrative burden of managing payroll monthly. Explore our payroll plans here

2. Access a Comprehensive, Preexisting Knowledge Base

Keeping up with payroll rules and regulations can be overwhelming for a small business owner. Does your state require a SUTA? How much of a percentage is it? When do you need to file a report of a new hire? Do you need to file a I-9 for citizens? Most small business owners don’t know. We do.

With Guidant Payroll, you’ll have constant, ongoing support from your own dedicated team of payroll specialists available to answer any and all of your payroll questions.

3. Maintain Payroll Accuracy

The data behind running payroll must be accurate. If it isn’t, your company can be subject to penalties and fines from government authorities and even to legal action by employees. And these fines can accrue significant interest over time.

Tax withholding can be especially complicated. Part of FICA tax, for example, is a Medicare tax. Both employees and employers pay 1.45 percent, but employees pay an additional 0.9 percent on earnings of more than $200,000 for single filers and $250,000 for joint filers.

Not only are these withholdings complicated, but they can change every year. All applicable rules and regulations can change frequently as well. Working with a reliable payroll provider ensures the accuracy of all your payroll processes.

4. Simplify Top-Level Decision-Making

Payroll requires upper management to make many decisions, from payment methods to methods of recording employee hours. Small business owners need to know the pros and cons quickly and reliably. Payroll service providers can help you make the most cost and time effective decisions for your business when it comes to managing your payroll.

At Guidant, we always take an education and human-first approach — helping you make the best business moves, be it payroll or beyond.

5. Keep up with a Changing Landscape

Payroll has a lot to do with taxes and with government rules and regulations. Taxes and government mandates can, and do, change regularly. Everything from the taxes assessed to the percentages of individual withholdings can change annually.

Failure to keep up with changes exposes your company to fines, penalties, and potentially even legal action. Fines and penalties are exacerbated by interest, so your cash flow can be affected for years.

Payroll service providers can ensure that your company is ahead of the game, protecting your business from expensive fines and penalties.

6. Optimize Time

All aspects of payroll can take a great deal of time — if you try to do all of it yourself. Hiring personnel to manage and process payroll for your company can also be very costly and time-consuming. Not only that, but the time it requires can divert your attention from aspects of your job that are more important to the success and survival of your company, such as business strategizing or hiring and training new employees.

On average, small business owners spend more than 41 hours on tax preparation each year and up to five hours on payroll taxes each pay period. Don’t let your business’s chances of success falter by focusing on laborious administrative tasks. Leveraging payroll services can help optimize your time management as a small business owner.

7. Avoid Fines and Penalties

Gavel on top of cash. (Complete Guide to Payroll for Small Businesses - Guidant Financial.)

Businesses who don’t pay either their own tax obligations or correctly calculate and withhold employee taxes and other obligations can be subject to fines and penalties. The IRS collected more than $13.6 billion in employment tax penalties in fiscal 2022, a steep rise from past years.

Tax fines can be levied for underpayment, inaccurate amounts, late payments, and failing to file. If your state assesses taxes, the state can levy fines and penalties just as the Federal government can.

Fees for fines and penalties can impact your cash flow, diverting money that keeps your business running. These fines also come with hefty interest charges. In the worst-case scenario, businesses who don’t manage their fines and penalties can be subject to legal action.

Fortunately, fines and penalties can easily be avoided. A reliable payroll service provider will help your business pay taxes accurately and on time — and ensure that all withholdings are correctly done.

7. Keep Track of Payroll-related Rules, Regulations and Services

Payroll is subject to a number of rules and regulations beyond tax obligations. Contributions from employees who participate in the 401(k) retirement plan, for example, must be segregated from your general business accounts. Those funds must be deposited into the employee’s individual retirement accounts within seven days of when they were withheld in payroll if your business employs less than 100 people. Failure to do this can subject your company to financial penalties from the U.S. DOL and potentially an audit.

Some small business owners may rely on a Human Resources (HR) department or retirement plan administrator to both be aware of and comply with all applicable rules and regulations related to payroll. Payroll service providers can manage all aspects of payroll. And Guidant can offer so much more.

With Guidant Payroll, you’ll gain free access to our all-encompassing HR Support Center or HR On-Demand services for the first three months. You can then choose to bundle these services with our Core or Premium payroll plans for a low extra monthly fee. Learn more here.

Plus, as America’s No. 1 Leading Rollovers for Business Startups (ROBS) Provider, Guidant can ensure that your business is ROBS compliant — including when it comes to running your payroll. You can also choose to partner with our 401(k) Plan Administration Compliance team for help with setting up a new 401(k) plan for your business and employees.

Learn more about 401(k) business financing, also known as Rollovers for Business Startups (ROBS) in our Complete Guide to ROBS.

9. Scale Payroll Quickly and Efficiently

What happens if you need to hire a number of employees quickly to keep up with demand? Or what do you do if you need to hire seasonal employees? Payroll service providers can help your business scale up onboarding of new employees quickly and efficiently. Conversely, if you need to downsize or contract seasonally, payroll services providers can handle that seamlessly, too.

10. Handle Corporate Compliance

Corporate compliance refers to the necessity of adhering to official standards, codes, regulations, and laws. Failure to have appropriate payroll compliance can subject your company to fines, sanctions, and audits.

Payroll compliance means following rules set by the FLSA and the Equal Pay Act, correctly calculating and processing all withholdings, and classifying employees correctly. It also encompasses keeping up with changes in Social Security wage bases, changes in allowed contributions to benefits such as 401(k) plans, FSAs, and more.

A payroll services provider ensures that your payroll activities are always in full compliance.

In addition, ROBS funding requires certain forms of compliance, such as the annual filing of Form 5500 with the DOL. Guidant Financial’s Payroll Services provides full compliance with all ROBS-related activities as well.

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