Five Signs Your Business Has Outgrown DIY Payroll
There's no rule that says a business must outsource payroll at a particular headcount. Some owners run it themselves comfortably at twenty employees. Others should have handed it over at four. The right moment has less to do with size than with circumstances. Here are the five that usually signal it's time. 1. You Have Employees in More Than One State This is the clearest trigger. One state is manageable. Two means separate registrations, separate unemployment insurance accounts, separate filing calendars, and rules about which state's income tax you withhold. Reciprocity agreements between neighboring states add another layer, and they aren't intuitive. If remote hiring has spread your team across state lines, the administrative burden has already grown faster than your headcount. 2. You've Received an IRS or State Notice One notice is a warning worth heeding. Payroll tax penalties compound, and the underlying error is usually systemic rather than ...