New Jersey Payroll: What payroll options are available?
It’s no surprise that NJ Small Business Owners are looking for payroll options that will minimize the risk of payroll compliance issues. If you are a small business operating in New Jersey you already know that New Jersey Payroll Taxes are among the most complicated in the nation. While most states only have an employee withholding tax and an employer unemployment tax, New Jersey also adds employer disability and workforce taxes as well as employee unemployment, disability, workforce, and family leave taxes. The taxable wage base changes every January and business specific contribution rates change July 1st although the business owner may not learn of their new rate until August or September. In addition New Jersey businesses are now required to file electronically.
So what payroll options are available for New Jersey Small Business Owners? Well, here are three popular options:
- Accounting software (e.g. Quickbooks) frequently appeals to “do it yourselfers”. While on the surface it is the least expensive option, there are several hidden costs
- They take more of your time.
- You must subscribe to additional payroll and tax databases.
- You must purchase preprinted checks, micr ink and frequently dedicate a printer
- You are exposed to fines for compliance issues if by missing or miscalculating taxes,
or making errors with compliance reporting
- Some Business Owners have experimented with the relatively newer Internet based online payroll. A cost effective solution for a few, internet based payroll services are basically another “do it yourself” solution. It is it is important to understand that these services will not take responsibility for compliance issues that result from errors in set-up, data entry, and compliance reporting.
- A payroll service is the most popular payroll option. Outsourcing your payroll to an experienced New Jersey payroll provider will save you time and reduce the risk of payroll compliance issues. Since most payroll outsourcers have very good technology, and take responsibility for compliance, service and price becomes a key differentiator. While most large businesses tend to use large National providers like ADP, PayChex, or Ceridian, smaller businesses frequently find reputable locally based independent providers are able to give them more attention and offer more reasonable rates.