As a smart business owner, you are always looking for ways to help your business be successful and grow. For many business owners, as the work responsibilities grow they will look to hire an employee to help further lift the load from their shoulders as well as build their business. However, it is essential to always look at the actual cost of hiring an employee. It may be easy to think that the cost of an employee is only the cost of their wages. However, there is a lot more that goes into that one paycheck.
Full compliance with paying an employee also means that you are paying taxes on those wages. There are social security contributions, Medicare taxes as well as unemployment taxes. All of these can add up very quickly. But there are other considerations that you must take. It is important to realize that you are hiring a person who will have days when they are sick or need to take their kid to the doctor. You will need to think through if you will have paid sick leave or paid vacation accrual. If they are starting a family, there is some unpaid time off that they may have available as part of the Family Medical Leave Act. There are also insurance costs. While you not be required to pay some of these depending on the size of your company, you may want to use this to attract good employees.
If the tasks you require are more along the accounting or bookkeeping spectrum, you may want to consider hiring the service instead of hiring a person.
When you employ these type of services, you are only paying the fee associated to get the tasks done; similar if you just had to pay the wages of an employee. But now without any of the associated taxes or benefit costs that come along with hiring an employee. These professionals are proficient in their jobs already and will not take your additional time to train them on the processes. They may bring about the organization that you never really had the time to create. You can also trust them to know tax laws and to ensure that you are fully compliant with all regulations so that when it comes time to file your taxes, you can walk through the process stress-free.
If you are considering this option, please give us a call. We would love to talk to you about how we can help your business in all bookkeeping, accounting, and tax needs.