How much do payroll services cost for small businesses?

The cost of payroll services can vary depending on the features you need and the size of your business. On average, most small businesses can expect to pay between $20 and $200 per month for payroll services

Can payroll services handle tax filing?

Yes, most payroll services automatically handle federal, state, and local tax filings, ensuring compliance with tax laws.

Is it better to outsource payroll or manage it in-house?

Outsourcing payroll saves time and reduces the risk of errors. It is often more cost-effective for small businesses to outsource payroll rather than hiring a full-time staff member to manage it in-house.

Can payroll services handle benefits administration?

Many payroll services also offer benefits administration, helping small businesses manage health insurance, retirement plans, and other employee benefits.

What happens if payroll errors occur?

If errors occur, most payroll services offer guarantees and will correct the mistake and handle any penalties resulting from their error.

Can I use payroll services for both full-time and part-time employees?

Yes, payroll services can handle payments for all types of employees, including full-time, part-time, and contract workers.

Don't Miss These 7 Tax-Saving Tasks Before 31st March 2024!

Points covered

Invest in Section 80C instruments
Review Health Insurance under Section 80D
Check Form 26AS for TDS
Pay Advance Tax if applicable
Submit Proof of Investments to Employer
Review and Update Employee Declarations
Plan for the Next Financial Year

It’s that time of the year again! While the beginning of the year is filled with resolutions and new beginnings, the end of the financial year is marked by a different kind of activity – tax planning. For salaried employees in India, March 31st isn’t just the end of the financial year; it’s also the deadline for taking crucial steps to minimize tax liabilities for the year gone by. Here are seven important tasks every salaried individual should complete before the clock strikes midnight on March 31st, 2024:

1. Invest in Section 80C instruments

Section 80C of the Income Tax Act, 1961, offers deductions up to Rs. 1.5 lakh on various investments and expenses. Make sure to utilize this provision fully by investing in tax-saving instruments like Public Provident Fund (PPF), Equity Linked Saving Schemes (ELSS), National Savings Certificate (NSC), or Tax-saving Fixed Deposits. These investments not only help in saving tax but also offer long-term benefits.

2. Review Health Insurance under Section 80D

Health is wealth, and so is a health insurance policy! Under Section 80D, you can claim deductions on premiums paid for health insurance for yourself, your spouse, children, and parents. Ensure that you have adequate health coverage and make any necessary premium payments before the deadline to avail of tax benefits.

3. Check Form 26AS for TDS

Form 26AS is a consolidated tax statement that contains details of tax deducted at source (TDS) from various sources of income. It's essential to review Form 26AS to verify if all the TDS deductions are correctly credited to your PAN. Any discrepancies can be rectified before filing your Income Tax Return (ITR).

4. Pay Advance Tax if Applicable

If your total tax liability for the financial year exceeds Rs. 10,000, you are required to pay advance tax in quarterly installments. Missing the deadlines for advance tax payments can attract interest and penalties. Calculate your estimated tax liability for the year and ensure timely payment of advance tax to avoid any additional burden.

5. Submit Proof of Investments to Employer

Many employers require employees to submit proof of investments and expenses under Section 80C and 80D before the end of the financial year. Ensure timely submission of these proofs to your HR department to avoid excess tax deductions from your salary. This step can significantly reduce the tax deducted at source (TDS) from your salary income.

6. Review and Update Employee Declarations

Employee declarations are forms where you declare your investment and expenses for the purpose of tax deduction at source (TDS). Ensure that your declarations are accurate and updated based on your investments and expenses for the financial year. Any discrepancies can lead to incorrect TDS deductions, which may result in higher tax outgo at the time of filing ITR.

7. Plan for the Next Financial Year

While it's crucial to wrap up tax-saving activities for the current financial year, it's equally important to start planning for the next one. Evaluate your financial goals, investment options, and tax-saving strategies for the upcoming year. Starting early can help you make informed decisions and maximize tax savings.

In conclusion, the end of the financial year is not just a deadline; it's an opportunity to optimize your tax planning and maximize savings. By completing these seven tasks before March 31st, 2024, you can ensure that you don't end up paying more taxes than necessary at the time of filing your Income Tax Return for the financial year 2023-24. Remember, a little proactive planning now can go a long way in securing your financial future. Happy tax-saving!

And remember, if you need any help with your taxes or tax compliances, don't hesitate to get in touch with The Tax Planet at 91-98110 94733. We’re here to assist you every step of the way!