Hiring Taxkeeping Payroll
Service Saves Tax Penalties
Atlanta (Oct. 26, 2006) - Reduced payroll tax penalties are only one of the
benefits for companies that outsource payroll processes or payroll
tax filing, according to the 2006 Empagio Executive Study on Payroll
and Tax Filing, a national survey of financial and human resources
executives.
Among respondents whose companies outsource, nearly
three-quarters (72 percent) report outsourcing has reduced the
dollar value, while 69 percent reported that outsourcing has reduced
the number of payroll tax penalties.
More than half (56 percent) of executives indicated that their
companies outsource at least one payroll or payroll tax filing
service. While 72 percent of executives whose companies outsource
report outsourcing has reduced the dollar amount of tax penalties,
another 27 percent said that the dollar amount remains
unchanged.
More than 200 executives participated in this study, which was
conducted online in September 2006. Atlanta-based Empagio provides
human resources outsourcing.
According to the majority of executives whose companies
outsource, the main reasons for outsourcing are efficiency (68
percent), saving time (47 percent), and saving money (31
percent).
Of the 74 percent of executives who said that they had some
concerns over outsourcing, 43 percent say lack of responsiveness is
their top concern, followed by:
- Lack of customer service (35 percent);
- Non-compliant reporting (18 percent);
- Poor quality or ineffective technology/product (18 percent);
and,
- Concern that returns will not be completed on time (18
percent).
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