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1.     Miscalculating payroll: Employers who do their payrolls by themselves are vulnerable to making mistakes while calculating their payroll.  They may not be aware of the
recent tax updates and how to deduct the various taxes properly.  This could lead to paying a huge amount of penalties every time while running the payroll.

2.     Late Tax Deposits: Employers have to be cautious about the numerous deadlines they have to meet for depositing the federal and state taxes.  Different types of taxes have different
filing dates, so employers have to make sure they do not forget about filing the taxes at the right time.

3.     Misclassifying workers:  There are different types of categories that employees come under such as independent contractors, hourly or salary employees.  Classifying an employee with an hourly pay type under salary will cause to inaccurate tax withholdings and tax deposits.

4      Poor record keeping:  When hiring an employee, the employers have to make him fill out numerous forms such as W-4 and I-9.  Misfiling or forgetting to fill out any one of these forms can get your company in trouble during an audit.

5.     Not running payroll on time: Completing a payroll is a strenuous process that utilizes a lot of time and resources. Sometimes, companies either delay their payroll processes or they completely forget to do so.  They are continuously under pressure to complete their payrolls and hence, it is advised to outsource the payroll to more specialized companies such as Garden State Payroll.

Get the latest information about the 2011 Wage and Tax Facts at Garden State Payroll

5 Reasons to Outsource Your Payroll

1.   Accurate: By outsourcing its payroll,  a company can avoid any penalties related to improperly filing payroll related paperwork.  A payroll provider such as Garden State Payroll will use its specialization to make sure that the paperwork is filed on time and the tax calculations are accurate. 

 

2.    Time Efficient: A company can save hours by subcontracting its payroll to an external company.  The opportunity cost of a company not outsourcing its payroll is the time it could
have spent on doing the work the employees are there to do.  The revenue generated from giving your payroll to other companies is way more than the cost of time lost by doing it
internally.  

3.     Convenient: It is better to give someone else the task of doing your payroll rather than tackling the paperwork by yourself.  No need to worry about any delays, no pressure on your mind about dealing with the work, everything is taken care of!!

4.     Cost-effective: Processing payroll internally requires training and continuously buying updated software which could waste thousands of dollars.  When outsourcing the task of handling payroll, a company can cut down its costs significantly.  Hiring a Payroll Accountant just to do your payroll is more expensive than having another company do the same calculations in an accurate manner.  

 

5.     More-personalized: Small companies need their payroll provider to thoroughly know the business.  At Garden State Payroll, we work on frequently interacting with our clients and providing them with solutions about their payroll.

The Truth About Frivolous Tax Arguments (PDF 405K) addresses some of the more common false “legal” arguments made by individuals and groups who oppose compliance with the federal tax laws. These arguments are grouped under six general categories, with variations within each category. Each contention is briefly explained, followed by a discussion of the legal authority that rejects the contention. The second section deals with frivolous arguments encountered in collection due process cases. The final section illustrates penalties imposed on those pursuing frivolous cases.

Issue Number:  2011 – 5

Inside this Issue of the Outreach Corner

The Outreach Corner for May highlights the following drop-in articles: 

  1. Use IRS Withholding Calculator to adjust your withholding.
  2. Looking for a new job? You may be able to deduct costs.
  3. Here’s what every student should know about summer jobs and taxes.
  4. Claim summer day camp and childcare expenses.
  5. Wedding season is in full swing!
  6. Meet the Dirty Dozen — The IRS names the 2011 worst tax scams.

Connect with the IRS through YouTube, Twitter and other social media channels to spread the word about important tax information.

On this site, you’ll find communication materials to reach out to your customers, affiliates, employees, and others with helpful tax information. In addition to emphasizing available resources on IRS.gov, the Outreach Corner houses original material that you can customize and plug right into your Websites, newsletters and other communication platforms.

We can help you reach your customers. Any ideas for next month’s Outreach Corner issue? Send us an email at partner@irs.gov.


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