Businesses of all sizes must comply with regulations concerning payroll taxes. Many companies rely on a professional payroll service to help carry out their tax obligations. With the assistance of a certified public accountant (CPA), business owners can usually realize cost savings by moving the responsibility for payroll preparation from an outside firm back to the company.
Like many other aspects of accounting, payroll preparation is well suited for automation. The frequency of required tax deposits is dependent on how quickly the deposits accumulate. An accountant can install an accounting software package for your business and provide a customized level of support.
Routine data entry
You may only feel comfortable calculating and paying your periodic payroll, leaving tax filing to your accountant. Payroll software is kept up to date in regard to any changes in the various tax withholding tables. The software accurately calculates the amount to pay each employee. You may also prefer to print out the payroll checks yourself.
Many companies that provide payroll software also offer a paper check product through one of two options. Check forms that contain minimal preprinted information are referred to as blank check stock. Check forms containing your bank routing number and account number can also be ordered.
Printing your own routing and account numbers may require additional software due to a unique toner requirement. The mechanized sorting of paper checks by banks necessitates the use of magnetic toner to print the numbers along the bottom of a check.
To avoid potential penalties, withheld taxes must be deposited within a specific time schedule. Accounting software notifies you as soon as you have reached the deposit threshold for withheld taxes. Your CPA can advise you on how to electronically transfer the withheld amounts to a U.S. Treasury account set up for your company.
Even if you choose to file your own payroll tax returns on a quarterly basis, you may still need assistance with the preparation of year-end forms. Regular employees must generally be issued a copy of IRS Form W-2, summarizing their pay for the year. Most payroll tax forms can be filed electronically with software.
A user-friendly aspect of accounting software is that you can select a program interface designed for your specific industry. Your productivity is then enhanced by the use of common terminology associated with your line of work. Contact a CPA, like one from Carmines Robbins & Company PLC, for help in setting up payroll software.