Tax season has returned and with it comes a variety of questions about the impact of taxes on payroll. Padgett Payroll Services® employs only the best experts in our field. Our goal is not only to offer payroll solutions for your company, but to help you save money in the process. That is why we put together this quick guide to tax deductions and management for businesses of all sizes: because payroll taxes aren’t the only thing you can deduct this spring!
Your Role in Tax Season
Employers actually take on a great deal of payroll-related expenses. Employers take on portions of Social Security and Medicare taxes, state and federal unemployment taxes, as well as worker compensation. Health insurance, paid holidays and sick time, as well as any contributions to a 401(k) or pension plan are also an employer’s responsibility.
Payroll Tax Deductions
Social Security and Medicare tax can both be deducted from company taxes. Keep in mind only the amount of payroll tax actually paid by the company is deductible – withholding amounts are technically paid by the employee (not the company) and are not tax deductible. Tools like ADP’s list of payroll tax rates by state are helpful, but keeping track of changes in tax code is really a full time job. Our Padgett Payroll Services® specialists stay up-to-date with the latest changes in payroll tax code and keep you informed regarding all possible financial benefits.
The Impact on Human Resources
Many companies report Human Resources is responsible for employee training, new hire screening interviews, and paperwork, as well as any extra team outings, clubs, or committees the company might offer for employees. This is one primary reason many businesses opt in to outsourced payroll services. When Human Resources is able to focus on their primary responsibilities, the messy paperwork becomes another company’s job.
Resources to Manage Payroll Taxes
While there are a great deal of resources on the Web, like the IRS’ guide to understanding employment taxes, tax codes are constantly updated. For large companies, this means hours of research and managing employee paperwork. Big changes mean applying the updated regulations to all employee and government forms. The best way to ensure accuracy and avoid an audit is to employ the payroll specialists at Padgett Payroll Services®.
It is difficult for many businesses to navigate tax deductions on their own, especially with so many available. Padgett Payroll Services® has professional payroll management for companies of all sizes to help your business save money – especially during tax season!