A lot of business owners aren’t experts in accounting or have training or experience in running their own payroll services. Payroll processing can be challenging and confusing to small business owners, and the fact that the IRS can impose penalties if not filed correctly makes payroll processing somewhat intimidating. Because of this, most small business owners leave payroll processing to experts -either by outsourcing payroll, or processing it in-house (also known as traditional payroll).
- Outsourcing Your Payroll is More Cost Effective
If a business owner uses a certified public accountant (CPA) to perform in-house payroll processing, costs could be anywhere between $260 and $480 per payroll run -not per month, but each time payroll is run.
For in-house payroll servcies, using a CPA is the best way for having your payroll done correctly because certified public accountants are specially trained in accounting and payroll procedures. However, certified public accountants charge between $65 and $120 per hour and at approximately 4 hours per payroll processing run, the cost can be quite substantial.
So how much can you really save?
Let’s compare how much it would cost for Small Business Inc. to run payroll for its four employees once a month. Just to be conservative, we’ll use $65 per hour to estimate the traditional in-house payroll cost –the low end per …