For small businesses, processing payroll can be a complicated and time-consuming task. Among other things, payroll functions can include anything from determining employee wages and withholding taxes, to updating vacation and sick pay and deducting employee-contributed payments for benefits.
Accurate and correct payroll is very important to your employees and important to you as a business owner. Payroll is more than just sending out paychecks every two weeks. You need to comply with and make sure you pay all of the federal, state and local taxes that are tied to having employees. A payroll service will handle the details and keep you out of trouble with the taxman; however, such a service does have some drawbacks.