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Tips for Employers Who Outsource Payroll Duties

Are you looking to outsource payroll to a firm of bookkeepers, but not too sure if it’s the right decision for your business? Keep reading for our tips on making this decision work for you.

How to I pick a good bookkeeper in Melbourne?

Should you consider outsourcing your payroll to a reputable third-party bookkeeper? It can in many cases help streamline and simplify the bookkeeping process. Of course, that’s if you find a reputable one. As with any financial services, the market is saturated with practitioners and it is vital that you take your time in choosing a reputable practitioner. However, this is the same for any financial service provider, not just bookkeepers. Knowing how to pick a good, reputable service provider is half the battle when option to outsource payroll.

How can I protect myself against a bad bookkeeper?

As we mentioned above, choosing well is an essential part of looking to use a bookkeeper for outsource payroll. Once you have a reputable service provider on your side, you will be able to relax in the knowledge that your finances are in good hands. Remember that you- not the bookkeeper- will still be legally responsible for all taxes due, including that withheld on behalf of your employees. Most tax services, like the IRS, offer programs to help you know that the service provider of your choice is a good one. Be sure to check that they comply with the local tax registration or certification for your area.

What else can I do to protect myself?

It’s always a good idea, even if you have outsourced your payroll to a bookkeeper, to make sure you retain control of the payment system. As a good second choice, make sure to use an approved payment channel that you can easily monitor to make sure payments are happening as they should. Remember, you will be liable if they are not paid over. For example, the IRS offers the Electronic Federal Tax Payment System to give you safe online access to payment.

Also be sure that you do not allow the bookkeeper to substitute any address other than your own on your returns. Leaving your address on record with the tax agency ensures that you will continue to receive communications, bills and notices regarding your tax accounts…and that in turn means you will be kept in the loop and informed should anything go awry. You will be able to address the issues immediately instead of finding out the hard way later. It also helps a lot if you familiarise yourself with the legislation and important filing dates, so that you have a rough idea of what should be happening when and can address things accordingly to be sure that they have been done.

In the end, what it comes down to is the fact that you are responsible for making sure your taxes and payroll are properly handled, even when outsourcing to a bookkeeper- make sure you take steps to ensure your affairs are properly handled.

Find out more informations here: http://www.forbes.com/sites/irswatch/2013/07/17/new-irs-fact-sheet-tips-for-employers-who-outsource-payroll-duties/#55b867a537ce