It’s always good to research your options before making a business decision. The questions may differ depending on the industry your company is in, but payroll plays a factor in every business, and it sure isn’t cheap.
Statistics show that it costs small- to mid-size companies an average of $2,000 per employee per year to handle payroll. Even if you’re a small- or mid-size company, a Professional Employer Organization like Group Management Services may be a good fit to help streamline your payroll needs.
Of course, working with a PEO is a big decision, so you’ll want to find out what they can offer your business. Here are some ways to find out if a PEO is good fit to handle your payroll.
It’s expensive to pay employees, and I’m not just talking about salaries and benefits.
The payroll process is pricier than many business owners realize. It costs an average of $2,000 per employee per year for a small or mid-sized company to handle payroll. In addition, up to 40 percent of businesses in the United States are given an average of $845 in IRS penalties each year.
These costs add up and can really hurt a company’s cashflow. We’ve already discussed how loss prevention and cost containment can help your business, but a professional employer organization (PEO) can also save you money and time by handling your payroll.
Effective September 1, new withholding tables will result in increased take-home pay for Ohio workers. Governor Kasich’s plan will lower the income tax rates 10% over the next three years with a majority of the decrease coming in 2013. In addition to the lower payroll withholding rates, small businesses will see tax savings of up to 50%. And while that’s great for payroll and businesses, Ohio will also see an increase in sales tax by .25%.
A brief description of the withholding rate change was released by Tax Commissioner Joe Testa on August 26th, and can be found at: http://www.tax.ohio.gov/Portals/0/communications/news_releases/NR_TaxWithholdingCut.pdf.
The Department of taxation released an update of the sales rates on their website at: http://www.tax.ohio.gov/sales_and_use/rate_changes.aspx.
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