INTERNET APPLICATION DEVELOPMENT
MID MARKET ERP DEVELOPMENT
By Brian Terrell
Like most business owners, payroll is on my mind. On April 18, I retweeted an article about payroll from the perspective of a CPA offering to do these services for clients. Today, I am wondering if I should take advantage of these services and what that would mean for me and my businesses.
Payroll and payroll related automation has rewarded our company well. One year, we worked late every night in January reconstructing the payroll records for a set of companies whose multi-company and multi-state records for the previous year had not been completely set up. Thus, the annual payroll reports, which depend on each taxing authority's complicated but very different definition of taxable wages, had to be recompiled and amended and then re-filed. As the clock wound down on the deadline for distributing Form W-2s to our client's employees, the process became exciting and somewhat dramatic. Not “Law and Order: SVU” dramatic, but definitely interesting. Eventually, we helped our client's client file on time.
More recently, a client made a slight error in the first quarter of the first year that the IRS temporarily reduced the employee's share of the FICA burden. Our sister company, in working with the IRS to resolve this issue, had their service representative admit that many, many employers had tripped up on this change. To me, the IRS' response teams suffer from a supply and demand imbalance to begin with, and I imagine changes in long-standing tax rates only added to their burden. Regardless, it added to the employer's burden, as it took an entire year and four or five very complicated and detailed letters to set the issue straight.
I often ask myself "should I do my own payroll?" I think, increasingly, the answer is no for the small- to medium-sized business. Recently, I received a quote for the semi-monthly preparation of 15 employee paychecks for $45 per pay period. Wow…that makes the decision easier. Now, I ask myself "how can I integrate payroll with Intacct" or "how can I integrate payroll with Sage?" That's something I, and many others who might contemplate this change, may have. Luckily, CodePartners has all the resources needed to automate the creation of the G/L and cash transactions making up the payroll process.
Ultimately, I may join what I think must be a part of a larger trend of small- and medium-sized businesses who will give up, after 22 years in my case, the internal preparation of payroll checks. That frees me up to spend more time helping CodePartners' clients automate their business processes, which makes both them and me more successful.