Like rent, payroll processing is a task that produces no revenue, though it is a necessary evil for business owners who wish to stay in business. Time spent processing payroll is time not available to add to the bottom line, whether that might be increasing sales, collecting receivables, developing new products or even taking some time to relax and recharge the batteries. All of these things are more productive than payroll processing which can only create risk for the owner as well as cost time and money.
What’s the risk? Every single paycheck includes at least five required tax deductions in each state which then must be added to other employer taxes and voluntary deductions, and every one of these items is an opportunity for a problem to occur. The late or incorrect deposit of these tax liabilities can result in costly penalties and interest for a business owner. A payroll service provider shoulders both the workload and the liability of the payroll processing and the business owner can now focus on bottom line – running and growing their business.
The employer maintains complete control over when and how the payroll is processed, wages, raises, reviews, hiring, and benefits. Access to information is also not a valid consideration as business owners have complete access to all reports, history, personnel data as well as report writing capability with our web based service. Since there are no “contracts” in payroll, no employer is ever forced to stay with a service they find unsatisfactory for any length of time. All payroll services can be terminated with a simple letter or phone call.
The biggest benefit of tax filing service is that if ever a notice arrives from the IRS or EDD, a client simply faxes that to their service provider to be handled. These notices often result from a mistake by the IRS or EDD and are cleared up very quickly – all without any effort from the business once that fax is sent. The employer who does it himself (for “free”) will spend many hours responding to such notices, hours away from the business that can never be replaced. Outsourcing your payroll function, by the way, does not relieve you from your tax responsibilities, but it does put the liability on the shoulders of your contracted Payroll provider, not you! The cannabis industry is no different than any other industry when it comes to basic business expenses. If you’re not already processing with a payroll provider and need help getting your cannabis business legit contact us at KCBusiness-Solutions.com.
818-618-2474 | Karin Clarke | karin@karinclarkebiz.com