Although there are many options available that your company may use to outsource, one of the most popular business processes to hand over to an outside company is payroll. Let’s face it: Payroll can be complicated and time-consuming. That is why you should consider outsourcing to a South Jersey accountant, because there are many benefits to using their services.

What is Payroll Outsourcing?

According to accountants in South Jersey, payroll outsourcing is when you hire an outside source to handle your payroll needs. When deciding “is an accountant for my small business necessary for payroll,” there are certain things to remember. You can outsource the entire payroll process from creating time cards to paying tax balances. Or, you can choose to keep some facets of payroll in-house.

How Does Payroll Outsourcing Work?

Once you have made the decision to outsource payroll, you will need to determine what parts of payroll you want to keep and what you want to allow the outside company to handle. The first thing a South Jersey accountant will do is to establish a method to transfer information.

Keep in mind this is not just information about salaries, but also sensitive data related to your staff. The company will need names, social security numbers, vacation and sick day policies, expense allowance rules, addresses, wages and more. Therefore, accountants in South Jersey often ask for a data protection policy as well. Once the data is collected and entered, the outside company will begin processing payroll.

Benefits of Outsourcing Payroll

If your company does not have a dedicated finance and administration team in-house, outsourcing payroll is extremely beneficial as it will remove the burden of paying employees from staff who have other duties. Even if you have in-house financial experts, accountants in South Jersey can allow them to focus on strategic planning and other aspects of your company. Outsourcing payroll will also guarantee that your staff is paid in a timely manner and that your employment taxes are filed properly. At the end of the year, tax forms will be sent out to your employees so that they arrive as quickly as possible.

Things to Consider Before Outsourcing

Things you should consider when wondering “is an accountant for my small business payroll important” include the size of your workforce and the number of people who are currently responsible for the payroll process. You also want to remember that if just one person has been responsible for payroll, they may be concerned about job security. You will need to decide where that employee’s attentions will now be focused. Accountants in South Jersey are also beneficial if your company lacks adequate expertise and knowledge in payroll processes, especially if your business if fairly new. In addition, remember that you will need to determine if outsourcing will be less costly than the method you are currently using.

Payroll Outsourcing Saves Time and Money

Research indicates that outsourcing payroll to a South Jersey accountant can actually save time and money. Payroll is one of the most time-consuming business processes and by freeing up your financial staff by shifting payroll elsewhere, they can focus on goals that will help your company grow. In addition, the cost of outsourcing is almost always less expensive than paying employees to handle it.

Compliance and Error Protection

One of the main reasons to let accountants in South Jersey handle your payroll is that they are able to identify hidden costs you may have missed in your payroll. Not only that, you minimize the risk of errors, late payroll tax filings as well as missed deadlines. Your staff is paid in a timely fashion and you are sure to meet all payroll regulations necessary under governmental requirements.

Disadvantages of Outsourcing Payroll

There are a few disadvantages to outsourcing payroll. Although you will likely work closely with a TMD Accounting, you will still be handing control over to a third party. Your staff will still need to take time to coordinate certain tasks and activities. This may mean reviewing time sheets and expense reports before they are submitted to the accountants in South Jersey. It is still important to monitor results to be sure the outsourced company is meeting expectations.

What to Look for In a South Jersey Accountant

When deciding a company to handle your payroll, there are things you should look for. You want good internal controls that indicate the company is structured, organized and offers quality performance. You also want to choose a company that uses the most up-to-date technology. Accountants in South Jersey should be on top of regulations, especially changes to the United States tax code which is complicated and subject to change often. You also want to choose a company that has competitive pricing and offers outstanding customer service.

Looking to Outsource Your Payroll?

Outsourcing your payroll can be a complicated decision which is why you need to choose a South Jersey accountant that puts their clients first. At TMD Accounting, numbers matter and people count, a motto we have followed for more than 40 years. We are family-owned and operated, and our team takes pride in treating our clients well. We understand as accountants in South Jersey that payroll is a complicated process and we want to be sure your transition to outsourcing is as smooth as possible. Contact TMD Accounting today by calling 1-856-228-2205 or by filling out the easy online form. See how we can help take your company to the next level.

Like many other things in New Jersey, the payroll tax laws are complex. As a small business owner, you must ensure compliance with the relevant laws that apply and make sure to remit the correct payroll taxes to the appropriate tax authorities. Failing to pay your payroll taxes on time or in full can result in substantial penalties. Here is some information about New Jersey payroll tax laws from a South Jersey accountant and why you should consider hiring the professionals at TMD Accounting.

Overview of Payroll Tax Laws in New Jersey

As an employer, you must comply with federal and state payroll tax laws. Federal laws include mandatory withholding of federal income taxes, Social Security, Medicare, and Federal Unemployment Insurance. New Jersey employers must also comply with the following state laws.

State Income Tax Withholding Laws

Under New Jersey’s laws, you must withhold state income tax from your employees’ paychecks and remit them to the state at regular intervals. These laws apply unless you also must withhold the income taxes of another jurisdiction at an equal or higher rate than New Jersey’s rate. You also have the legal obligation to withhold state income taxes for employees who are non-residents. Under New Jersey’s progressive tax system, you’ll need to understand the state’s income tax rates, which range from 1.4% to 10.75%. The highest rate applies to employees whose gross incomes range from $1 million to $5 million, and the lowest rate applies to those earning up to $20,000.

Employers must withhold income taxes of 21.3% from their employees’ wages applied retroactively to Jan. 1, 2020, as a catch-up provision. You must file payroll tax withholdings each quarter, and you must file a year-end payroll tax return electronically.

Reciprocity With Pennsylvania

New Jersey and Pennsylvania have a reciprocity agreement. This means that if you have an employee who lives in Pennsylvania, you’ll need to have them fill out Form NJ-165 to avoid New Jersey state tax withholding.

Unemployment Insurance

Most New Jersey employers must pay state unemployment insurance taxes. If you have one or more employees to whom you pay wages of more than $1,000 per year, you are required to pay state unemployment taxes. State unemployment taxes in New Jersey are based on a wage base of $34,400 per year. The rates range from 0.5% to 5.8% and are calculated each fiscal year. Your experience rate is calculated by taking the contributions you have paid and subtracting any benefits charged. You then divide that amount by your company’s average annual payroll. New employers are assigned rates for the initial three years based on their experience. Employers must also pay state disability insurance taxes, family leave insurance, and workforce development funds. Typically, these three types of taxes total around 0.0005%. When you pay state unemployment taxes in New Jersey, you might be able to take a discount of up to 5.4% on your federal unemployment taxes.

Workers’ Compensation

Employers in New Jersey must either carry workers’ compensation insurance or qualify to self-insure. To self-insure, you must seek approval from the Department of Banking and Insurance and show that your company has the financial ability to meet its legal obligations.

In addition to these various types of taxes employers must pay, there are a variety of forms that must be completed.

Why You Should Hire a Small Business Accountant in NJ to Handle Payroll

Below are some reasons why you should consider hiring a small business accountant in New Jersey to handle payroll for your company.

Leveraging Expertise

When you outsource payroll to a small business accountant at TMD Accounting, you can leverage their expertise and specialized knowledge. This can help to ensure you remain legally compliant and reduce the potential of costly errors.

Cost Savings

A professional accountant can help your business save money over the long run when you outsource your payroll to them by offering efficient, streamlined services. You can avoid the costs of hiring full-time employees to handle payroll while receiving valuable tax advice.

Ensure Regulatory Compliance

Payroll tax laws in New Jersey are complex, and complying with them can be time-consuming. It can be overwhelming to deal with regulations, laws, and payroll taxes if you don’t have a background in finance or accounting. By hiring a professional accounting firm, you can ensure regulatory compliance and avoid costly penalties.

Avoid Penalties

Most business owners simply don’t have the time to properly handle payroll and are prone to mistakes. This can result in potentially costly penalties. A South Jersey accountant can help you avoid fines, penalties, and fees assessed by the Internal Revenue Service by processing your company’s payroll correctly.

Maximize Deductions on Your Tax Returns

As accounting and tax experts, South Jersey accountants can help you identify and maximize available deductions on your taxes that are associated with payroll. This can help to keep your payroll costs low and reduce your taxable income.

Small businesses can enjoy numerous benefits by outsourcing payroll to professional accountants. An accounting firm can provide tailored solutions for your business to meet your payroll needs while also advising you about taxes and helping with filing your returns.

Find an Accountant for My Small Business

If you’re looking to outsource your small business payroll to an accountant in New Jersey, you should reach out to TMD Accounting. Our experienced accounting professionals can provide quality payroll services for your company. To learn more about the tailored solutions we can offer to your business, call us today at 1-856-228-2205.

As a small business owner, you understand the need for accuracy. When it comes time for your payroll, you want to ensure that workers receive fair compensation for their labor. If you don’t manage your payroll, it can harm your business’s reputation and future prospects. You need an accurate system in place to avoid any issues for your company. Here are a few things to know about payroll processing so that you can prevent problems in the future.

Accurate Payroll Processing Is Vital for Your Business

You want to ensure that your business has accurate payroll processing measures in place. First, you want to make sure that all your employees receive fair compensation for their jobs. Missing a payment or using the incorrect rate can lead to frustration and distrust, resulting in increased turnover rates and decreased productivity from your employees.

Along with that, you always want to avoid any potential legal issues. Failing to pay your employees can lead to fines, legal fees, and lawsuits. As a result, it could damage your financial stability and the company’s reputation.

With a precise payroll processing system, you can maintain a positive public image for your business. You can attract more customers and employees when you are known for treating employees fairly and providing accurate compensation. In turn, that can lead to increased growth opportunities and profits.

Accurate payroll processing is essential for maintaining employee satisfaction, avoiding legal issues, promoting transparency and trust, and presenting a positive public image. For that reason, you will want to prioritize your payroll processing to ensure the long-term success of your business.

Why Do You Need to Outsource Your Payroll Processing?

Outsourcing payroll processing has become a popular option for businesses of all sizes. There are many benefits of outsourcing this task. It can help companies to streamline their operations while minimizing errors and ensuring compliance with regulations. Here are some key reasons you may want to consider outsourcing your payroll.

Cost Savings

Outsourcing payroll processing saves you money on staffing costs, equipment, and software. With these services, you no longer have to spend time and money training your in-house staff on complex payroll systems and regulations.

Time Savings

Outsourcing payroll processing can free up valuable time so that you can focus on other areas of the business. Hiring a company to handle your payroll can be beneficial if you have a small business. These companies often don’t have time to manage payroll by themselves.

Accuracy and Compliance

Payroll processing companies ensure that payrolls are processed accurately, on time, and in compliance with regulations. These services help to minimize errors and reduce the risk of penalties and fines for non-compliance. They also keep up to date with changes in tax laws and regulations, ensuring that your payroll is always compliant. This can help you avoid costly penalties and fines from the state and federal governments.

Data Security

Outsourcing payroll processing can help ensure that your sensitive employee information is secure. Payroll processing companies use the latest technology and security measures to protect your data from unauthorized access.

Expertise

Finally, these companies have the expertise and resources to handle all aspects of payroll processing, including complex tax calculations, employee benefits, and regulatory compliance. With that, you can ensure that your payroll is accurate and compliant while reducing the risk of errors.

Choosing the Right Payroll Processing Service for Your Small Business

When it comes to choosing a payroll service or South Jersey accountant, there are several factors that you should consider when selecting the best option for your business needs. Here are a few tips for choosing small business accounting services for your company.

Track Record of Success

You want to work with a firm with a proven track record of honesty and accuracy in handling federal, state, and local tax filings and payments. You should also know if the firm encourages clients to verify payroll tax payments using well-known methods, such as the Electronic Federal Tax Payment System (EFTPS).

Insured

A reputable payroll processor should have errors and omissions (E&O) insurance, a fidelity bond for crime protection, and cyber liability coverage to protect against potential losses or damages.

Solid Reputation

Along with integrity and insurance, you will also want to consider the reputation of the payroll service provider. The right firm should provide you with a long list of references who can vouch for the quality of their services. Make sure to contact these references and ask them specific questions to ensure that the provider offers excellent customer service.

Latest Technology

The payroll service provider should have the latest technology that seamlessly integrates payroll processing with employee time tracking and human resource management. Additionally, the service should offer employees a secure portal to access their pay and other relevant information. A reliable time and attendance system will be instrumental in tracking employee attendance, work hours, and paid time off.

Find an Accountant for My Small Business

Setting up proper payroll processing practices is crucial for the success of any business, no matter its size. At TMD Accounting, we have a team of expert accountants who can help create a payroll plan to pay your employees and keep your business compliant. We provide payroll and bookkeeping services to companies in various industries, including automotive and body shops, healthcare, construction, hospitality, restaurants, and professional services. If you would like to learn about our services, please contact us at 856-228-2205.

One of the most time consuming aspects of running a business is payroll processing. Although it may sound simple to compute the hours an employee works and cut them a check, the fact is that there are many other aspects to payroll processing that many business owners do not consider. These include payroll taxes, wage garnishments, labor regulations regarding hours and breaks as well as making sure payroll is executed and issued in a timely manner. The team at TMD Accounting offers these tips for simplifying your payroll processes.

Budget for Payroll

One of the biggest mistakes business owners make, according to small business accounting services, is not budgeting for their payroll costs. Keep in mind that payroll involves more than just paying your staff. You will need to have enough budgeted to not only cover employee salaries, but also withholding taxes that must be submitted to the Internal Revenue Service, your state, and your local government quarterly. What many new business owners don’t understand is that although your employee has FICA and Medicare tax withdrawn from their checks, as an employer you are also required to match those amounts. Therefore, you want to be sure that your budget includes the salary plus the taxes you will be required to submit.

Consider a Separate Bank Account

Although you are able to pay your staff from your main business account, using a separate account for payroll may help make your cash flow more transparent. When your company is growing, this can help you budget more easily. It will also help you keep better track of your payroll taxes, the cost of the benefits you offer as well as other deductions you may need to withdraw from your employee’s payroll checks.

Choose a Payday and Stick with It

Your employees expect to receive a paycheck at regular intervals and while there are pros and cons to the various time periods you use for payroll, whether it is weekly, bi-weekly, twice a month or monthly, once you decide when payroll will be issued, small business accounting services suggest you stick with that schedule. Keep in mind that the more often you pay your employees, the more you will need to track your withholdings which is why many employers use the bi-weekly or twice monthly methods for payroll says a South Jersey accountant.

Salary or Hourly?

One of the most frequently asked questions when people ask “is an account for my small business necessary” is whether paying employees a salary or paying them hourly is the best option. This may depend on the business you are in as well as what each employee does. In most cases, management will be placed on salary as their duties are more complex. Paying hourly requires a bit more work as you will need a method to track each employee’s hours every pay period. If you outsource your payroll to small business accounting services, they often have mechanisms in place that will track your employee hours for you.

Use Direct Deposit

Research indicates that more than 80 percent of all Americans are paid via direct deposit, and this is one of the best ways to streamline your payroll services. Direct deposit allows you to review reports before you transfer funds to your staff. There is no need for stacks of checks that need to be signed, envelopes to keep payroll private concerns about lost checks or any of the other issues that you face when you issue paper checks.

Payroll Policies

Another critical error many business owners make is not having policies in place for their employees and this is especially true of payroll. When you hire a new employee, there will be documents they need to provide, including copies of Social Security cards, filling out a W9 form as well as any benefit paperwork. Consider issuing a payroll policy that has time sheet deadlines, information about taking sick or vacation time, reimbursement for business expenses and more. You and the employee should sign the policy with a copy given to the employee as well as one in their personnel file.

Set Up Reminders

It is likely your employees will not be pleased if you forget to pay them, and it will be difficult to retain staff if you consistently make mistakes in their paychecks. Although using a South Jersey accountant will help prevent these errors, you can also make sure things are done in a timely fashion by setting reminders for yourself. These may simply be a reminder to submit approved forms in time for checks to be issued or one so that you remember quarterly taxes must be submitted.

Electronic Tax Filing

The IRS offers the option to file payroll taxes rather than mail in forms and a check. It is likely your state and local governments offer that as well. This helps eliminate the risk of payments arriving late and helps you remain compliant with the law. Usually, you will receive an instant confirmation that your payment was received which you can file for your records.

If you are asking “will an accountant for my small business help with payroll,” the answer is yes. TMD Accounting has been offering accounting services for more than 40 years as a family-owned and operated South Jersey accountant. Contact our team today about your payroll needs by calling 1-856-228-2205 or fill out the easy online contact form.