Payroll Tax Deferral Updates and Implications for Business Owners
Business owners—did you know that deferred payroll taxes may ultimately fall on you for repayment? Ensure you're up-to-date here.
The current COVID-19 pandemic continues to disrupt the traditional workforce and the work environments many Americans were accustomed to. Additionally, the pandemic continues to have a massive impact on the American economy. For businesses of all sizes across the U.S., drastic measures have had to be taken to lessen the impact. Many companies have had to shift to complete or partial remote settings, reduce the size of their workforce, and many have faced growing losses in revenue. The short term effects of these measures are obvious, but many will have adverse long-term effects as well.
It’s especially important for business owners to think about both the short-term and long-term effects on their business and strategize on how to best align their actions and reactions for the long-term benefit of their firm. With the right choices and strategy, a firm can put themselves in the best position possible for outlasting and surviving this current pandemic. Outsourcing tax and accounting services is one of the many options that firms can consider to weather the covid storm.
Many firms are actively working on reducing their overhead costs but aim to maintain employee productivity and overall firm efficiency. As the modern workplace that we were once accustomed to continues to shift and change, a door has certainly opened for outsourced accounting services. A few things to consider:
While the ongoing pandemic has shown many of us that employees don’t need to be present in a physical office space to be productive and efficient, the same ideal applies to outside parties working on outsourced engagements. These outsourced workers are even more accustomed to remote work, and outsourcing reduces overall payroll costs. These are highly qualified experts in their field that can serve as valuable resources for firms of all sizes.
Businesses across many industries have had to adapt to remote work and quickly implement technological solutions to make it possible for their workforce to work from home effectively. Many organizations have migrated from desktop based accounting software to cloud-based software solutions and this has allowed employees to access their work remotely without any major pain points in terms of security,
Outsourcing accounting engagements to qualified experts allows business owners to access a greater pool of knowledge. These experts stay up to date with tax laws and regulations, both at a local and at a federal level, and continue to stay informed on all relevant compliance issues. This takes a lot of the time, stress, and hassle, off business owners from having to continuously stay the most up to date on current regulations and processes.
Outsourced tax and accounting services can provide real-time information and reporting using the data and metrics that are the most meaningful to key stakeholders. Business owners, having all this information at their fingertips, can make clear and direct decisions for the better of their organization.
Remember, there are many different options when it comes to outsourcing accounting services, and there is not one out-of-the-box solution that will fit all. A good initial step is first identifying which part of the business can be streamlined and assessing if it can be outsourced to a third party for accounting and tax services. While today’s business leaders and owners face high scrutiny when it comes to compliance, performance, and cost-efficiency, many are deciding to outsource their essential accounting functions for these reasons.
For a lot of firms, outsourcing is one step of many toward achieving savings while keeping the integrity of their own internal processes in place. For more information about outsourcing your accounting services to Taxfyle, or to request a demo, visit our website at www.taxfyle.com.
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