Yes you do. This is one I never understand. For a very affordable price, it makes sense to have your employees’ withholding taxes timely deposited, unemployment taxes paid, paychecks properly classified, and W2’s and tax returns timely filed. The cost for an error is substantial from the IRS as you are holding taxes in trust for others which makes everyone very sensitive. Also, you save time, have a clearer audit trail to employees’ labor costs used for labor distribution since this is connected to timekeeping. This is the classic penny-wise, pound-foolish cliché.
This is myth #15 of our SBIR Accounting Myths blog series. George Moker is a CPA and an entrepreneur who brings a real approach to managing the accounting needs of your firm. George created this series of blog posts to his more than 30 years of small business and startup experience in an attempt challenge the myths about an adequate accounting system and its importance within your organization.
For more information on how we can help with your SBIR accounting needs, please visit us at www.mokercpa.com