Is your payroll process working for you?
A smooth-running payroll is vital to your business. It takes a lot of time and effort to keep things running each month. But many companies aren’t aware of the benefits that outsourcing payroll can bring.
We are here to help. Read on for our guide to outsourcing payroll right here.
Table of Contents
1. Better Security
With all its complexities, business payroll comes with a lot of risks. Even with the best, long-term staff that you trust there is still the risk of things like:
- embezzlement
- identity theft
- tampering of company files
There’s also your own network security to consider. How safe is your data using your company’s server? One of the benefits of outsourcing your small business payroll is that most payroll services have programs to help spot suspicious activity.
The online payroll storage they use also offers a safe space for your confidential data. They also offer backup solutions so, in the event of a disaster, you can get up and running again in no time flat.
2. Saving Time & Productivity
Processing payroll in-house is time-consuming. It can be a source of frustration, and a lot of hours wasted for employees.
Outsourcing payroll lets you focus on your core business needs, it’s one of the best reasons to outsource payroll. You, and accounting teams can focus on strategic tasks. Let your outsourced team worry about the stress of payroll, and focus on what you do best. Building up your business.
3. Lowers Costs
To manage payroll, you’ll need an entire department’s worth of staff. Big businesses can afford it, but it can be a struggle for small and medium-sized businesses.
If you’re the owner and you’re trying to do payroll yourself, then the costs of your time are even higher. By outsourcing to any of the payroll services you don’t have to worry about your payroll employee:
- calling in sick
- taking vacation
- resigning
4. Prevent IRS Mistakes & Penalties
An important part of payroll is filling in your taxes correctly. But taxes are never easy. In fact, 40% of small businesses end up paying penalties on taxes. The average amount is around $845.
Businesses are responsible for providing accurate tax information. But federal and state regulations are ever-changing. As a business owner, you should expect yourself to keep on top of these rules.
A great payroll service is less likely than an in-house team to make a serious error. It’s their job to keep up to date with regulations. They’ll be able to make sure you’re always on time with your taxes and you’re complying.
5. Provides Expert Knowledge
You won’t have time for the constant research and studying needed to keep up with the law. From changing regulations to government forms to withholding rates, it’s a lot of work.
A great outsourcing service will have experts in many areas of payroll and human resources. For example, they would have a benefits department. This department handles deductions and benefits for your workers.
They might even be able to offer and handle a 401k plan. Whoever you choose, make sure they’re qualified and can prove their staff work to keep their knowledge as up to date as possible. When payroll outsourcing, you need a team that will meet all your payroll and HR needs.
Reasons to Outsource Payroll Made Easy
So, there you go! Now you know these 5 reasons to outsource payroll, what are you waiting for? It’s a no-brainer.
All the day-to-day payroll drudgery is off your shoulders and in the hands of experts. That frees you up to do what you do best and run your business!
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