There are many reasons why outsourcing payroll proves to be a great business minded solution for companies the world over, and millions do so every year. There are of course, some businesses who choose to handle payroll functions and responsibilities themselves, through manual bookkeeping or payroll apps, but small business owners are increasingly turning to professional payroll providers, and here’s why:
It can save you a whole bunch of time:
Whether you have a hundred employees, or ten, processing payroll is a task that consumes a lot of time and requires precise attention to detail. The time that it takes to type in data and check for errors, could be time better spent in other areas of the business, such as building revenue and engaging with clients. When you outsource payroll, business owners can spend their time more wisely and may only be required to have contact with their chosen payroll company once every pay period.
It can save you a whole bunch of money:
As they say, time is money, and when you outsource payroll, you will save money as they can take on several roles that you may have had to employ others to fulfil, such as:
Printing, signing and distributing pay checks or pay stubs
Report generating for in-house and accountants
Preparing and remitting payroll taxes and returns
When you assess the capabilities of a full-time payroll provider on a per-payroll-period or monthly basis, analysing the time and cost, it may well make financial sense to outsource payroll.
It can give you extra security:
Identity theft, embezzlement or fiddling with records, are all risks when you handle payroll in-house. Even those companies who use payroll software bought from a source that isn’t well established, run the risk of them going out of business or being bought out. Business owners also need to ask themselves how safe and secure payroll data is on the company’s server or network?
Outsourcing payroll gives you increased security and peace of mind, since an experienced and trusted service provider will keep your data strictly confidential with the use of modern systems for storing and protecting data.
Keep you on the right side of state and federal laws:
Tax regulations can be complex, and laws are known to change frequently. However, business owners are legally required to accurately report employment taxes to state and federal agencies, and it is wholly their responsibility, no matter how confused they may be about the different
Failure to comply with state and federal laws can lead to audits and costly penalties, both of which can be avoided if you outsource payroll to a trusted provider.
Outsourcing payroll could be the best decision for your business, and there are few who employ their services and go on to regret the decision. If saving time and money, having greater security for your payroll data and staying on the right side of the IRS is your priority – and it should be – then you would be wise to find a payroll provider that will suit your businesses’ needs.