You won’t find a bigger fan of numbers than me at DP. When someone throws out a really tiny or big number on some piece of paper, and there’s an explanation beside it, I can’t help but read it. Are you not shocked at the idea of American businesses being penalized $4.5 BILLION dollars just because of payroll tax problems?
Now, these numbers are actually improving. In 2009, the IRS issued nearly 8 million penalties that amassed $7.9B in penalties. We can make some healthy assumptions based on that number, and let’s not get caught up in the idea that the small business sector had largely been affected by the economy. In fact, the government doesn’t say what share of the fines were handed out to small businesses, but large employers are generally better equipped to stay current on ever-changing tax rules and so, too, are small businesses themselves. Evolving HR technology is helping businesses continue to unlock efficiencies in the way they manage payroll, but it’s especially small businesses that haven’t been able to keep ahead of the flood of tax rule regulations. Also interesting, there are statistics floating around that indicate that nearly 50% of small businesses are still doing taxes BY HAND.
Of course, we couldn’t write this article without informing you that DP has the resources to keep you informed on the all the latest tax changes. Our dedicated, in-house tax department stays up to date so that our clients don’t have to, and if you ever had questions they are always just an email away. Additionally, you’ll find a myriad of calculators in our resources section.
In addition to payroll processing, small business owners spend a third of their business days each year on tasks that do NOT generate revenue. Staying ahead of tax rules and is hard enough, call DP to take care of your payroll and tax issues today so that you can get back to work and leave the payroll problems behind!