California payroll: There are better ways to handle it

Doing your own California payroll isn’t what it’s cracked up to be. The common misconception is that a business owner can save a lot of money if he or she processes payroll himself. That simply isn’t the case in almost all instances. A company would have to be a healthy size, probably well over 200 employees, before it can begin to benefit from the economies of scale to make an investment for in-house payroll specialists. Additionally, the types of tasks that accompany payroll processing are slow and tedious unless the person responsible does them. That would also include all the time it takes to keep up with all the changes in rules and regulations governing taxes, benefits, and tax reporting. Review these 5 initial benefits of outsourcing payroll to see if having CBR do it for you would be good for your company.

Doing payroll yourself does not save money

Keeping up with the administrative infrastructure is difficult, especially for small or family-owned businesses. The basic problem is that all time spent on administrative duties is time away from profit-making duties. Doing your own payroll sounds simple until you realize that along with payroll comes benefits monitoring and handling, deductions handling for all the various taxes, and then there are the deadlines for tax reporting and payments and those have to be done correctly and on time. That brings us to the first of the major benefits for outsourcing payroll.

5 Benefits of Outsourcing Payroll Services

No. 1, Administrative Cost Reduction

You can expect to pay about $2,600 per year in direct labor costs for handling a payroll of just 10 people internally. CBR can do a lot better. As you can see, there are many opportunities for your company to actually save money by outsourcing without even considering the direct costs of equipment, software, and other materials, plus keeping the specialized records that grow every year. Especially considering the high cost of turnover, and especially the turnover of your in-house specialists, you really should talk to us about what we can do for you.

No. 2, Compliance

If you don’t already know that the Internal Revenue Service, the Social Security Administration, State Tax Department, and the Department of Labor’s regulatory requirements are unforgiving, then you haven’t lived in California very long. The most “taxing” part of payroll handling is meeting the deadlines with accuracy. At the last minute, it often seems like the numbers are not quite right. The stress of the deadline, coupled with the fear of uncertainty, really adds to the stress of doing business. Worst of all, though, is that it takes so much attention away from core business activities that make the profits for the company. For CBR, these are simple milestones in the normal process of activities. That is because CBR specializes in these processes and leaves you only with the superb feeling of a job well done, but put on someone else’s shoulders.

No. 3, Penalty avoidance

Labor department surveys indicate that 40% of the small businesses in California pay penalties averaging $1,000 each year for files that are either late or contain errors. If your company finds itself in that 40%, it is a big ding to the bottom line. Any penalty is also an expense that could have been completely avoided. Using CBR to handle those filings means your company will avoid such penalties thus eliminating the almost 1 in 2 chance of having to pay an average of $1,000 each year out of pocket.

No. 4, Accurate Handling

When you outsource payroll services to payroll specialists you can take advantage of their skill and expertise. The payroll specialists at CBR perform payroll processing duties as a matter of daily routine. They keep themselves well-informed of changes in schedules, regulations, and requirements.

No. 5, Confidential Payroll Information

An individual’s payroll and benefits information is private and employers like to keep it that way. Having CBR handle it keeps it more secure than when co-workers do it for other co-workers. Confidentiality is one of the qualifications and requirements of those handling payroll services at CBR. We never talk about our clients’ businesses.

Give us a call at our toll-free number, (888) 700-8512 and allow us to walk you through the details of outsourcing your payroll services for your California payroll and all the other administrative duties that we can also do to save your overhead administrative expenses.