6 Ways Payroll Services Can Help Your Small Business


When you’re in the process of starting and running a small business, you will need every element of it to work efficiently from the very start. In addition, it’s important to create a business that works well with the minimum necessary oversight and input from you. After all, your time is extremely valuable when you are running a business, and it’s important to determine where you are best delegating or outsourcing certain business tasks to maximize the value of your time and ensure that you’re able to keep as much time as possible free to spend on focusing on the core aspects of your business. Because of this, many business owners find that working with a third-party small business payroll service is one of the most valuable decisions that they can make. A payroll provider will automate and streamline the often-complicated payroll process, along with much more. 

Overcome Common Business Challenges

Payroll administration services such as G&A Partners can help your business overcome a range of common challenges. Even the best-run small businesses will encounter challenges and obstacles from time to time, but the most successful small businesses make sure that they always have a plan in place for the challenges that might arise and how to overcome them to prevent them from becoming serious problems in the future. Payroll services can play an especially important role in handling some of the most common challenges faced by small business including managing payroll and other administrative work and making sure that all the appropriate taxes are deducted from employee paychecks. 

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Get Support with Recruiting

Around 16% of small business owners view recruiting and employee retention as significant challenges when running their small business. While recruitment is crucial for a company to grow and make sure that the right people are in the right roles, it can also be more difficult than you think to hire the right talent. And, the process of recruiting employees will often demand a lot of time commitment. When you’re doing it yourself as a business owner, this can often come at the expense of other core business functions. Many payroll services also offer HR outsourcing that can help in key ways throughout the process of recruiting employees. They will often be able to offer support with background checks, for example, which will increase your likelihood of hiring the right people and protect you from the costs of hiring an employee that is not the right fit. 

Help with Scaling and Pivoting

Throughout the past eighteen months, small businesses in the US have faced a range of unprecedented challenges while facing the COVID-19 pandemic. Some sectors such as hospitality, entertainment and travel have seen businesses with no other choice than to close down, while others needed to rapidly scale up to meet huge demand spikes. The COVID-19 pandemic has caused massive disruptions to the business world, meaning that it’s more important than ever before for companies to be ready to scale up or pivot at a moment’s notice. The more nimble a business can be when responding to changes in market conditions, the stronger and more robust the company will be. Payroll services make it easier for your business to do this. For example, it makes it possible to seamlessly add more employees to payroll if you need to take on a large number of new hires to meet quickly growing demand. 

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Maintain Compliance as an Employer

Payroll service providers are often experts in small businesses, rather than simply payroll professionals. They will often offer services that can help your business in a wide range of different ways, including areas where you may not have even been aware that you needed help. Compliance is one of the most significant services that a payroll company can offer. Corporate compliance covers all programs that are designed to make sure that violations of codes, laws, regulations and standards are prevented at all times. Small business owners do not often have the in-depth knowledge of compliance that payroll and HR professionals will possess. Working with a payroll service can help you ensure compliance, including making sure that all required tax is paid. 

Manage Rules and Regulations

The HR and payroll department is often responsible for staying ahead of payroll withholding and coverage rules and regulations, which can often be complicated to deal with. When you work with a payroll provider, you get peace of mind that all of these regulations, rules and services will be managed on your behalf. For example, in most states where worker’s compensation insurance is a requirement for employers, you will also need to consider Medicare, Social Security, and state unemployment insurance and manage these appropriately, otherwise your business may be fined or have legal action taken against it. 

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Avoid Fees and Fines

While the IRS audit risk is quite low at less than 2%, it’s important to bear in mind that this does not mean that tax penalties do not exist. In 2018, over six billion dollars in penalties alone was levied by the IRS on business income, and more than four billion dollars in unemployment tax fines. Working with a payroll service will help you ensure that you avoid such fines and fees, which are often issued for failing to pay business tax, incorrect tax, late payments, underpayments and more. Often, fines and fees can be issued for something that was a genuine mistake on your part, which is why it’s a wise idea to work with a payroll service that can ensure that your tax returns and records are accurate, up to date and error-free before anything is filed. Working with a payroll company will ensure that these fines and fees are relatively easy to avoid for your company, with no risk of them potentially damaging your company’s cash flow. 

Payroll is an essential aspect of any business, but it’s not something that most small business owners are confident managing on their own. Outsourcing to payroll services is a wise idea, helping you save money and gain a range of further benefits.