The Benefits of Outsourcing Payroll
With all the work that goes into preparing and administrating payroll, this activity alone can consume a few days of your week…
Whether you’re a small-business owner or an HR professional in a larger company, managing payroll can be a real hassle. The rules and regulations surrounding payroll can be complex, and often vary from region to region. Outsourcing your payroll functions to a firm that specializes in payroll may sound like just another expense your business should try to do without—but planning to outsource payroll can actually save you both time and money.
Here are four great reasons to work with a dedicated payroll company.
With all the work that goes into preparing and administrating payroll, this activity alone can consume a few days of your week. If you own a small business, you simply don’t have the time to devote to payroll—and hiring a payroll employee would be cost-prohibitive. For HR departments, all that time spent working on payroll would be better served if employees could focus on core responsibilities.
Working with a payroll firm saves your business valuable time, and time is money. Outsourcing this function also reduces the stress of having to deal with payroll—and lowered stress means higher productivity.
Time wasted is money lost. Eliminate the time and effort spent on payroll every two weeks. Tax-filing services are also critical to government compliance, and can be time consuming and tedious. Many companies outsource payroll as much to get rid of the burden of tax filing as the payroll process itself!
Reduce Compliance Risks
A professional payroll services firm will take on both the responsibility and the accountability for your payroll. This means your company has a reduced risk for employee lawsuits and other costly payroll-related issues, including compliance issues with state and federal employment laws.
For smaller companies, outsourcing your payroll gives you greater separation of duties, reducing the risk of fraud that occurs when just one or two employees handle all of the accounting and payroll activities for the business.
Leverage the Experts
Managing and administering payroll is not as straightforward a process as we’d like. In addition to making sure all checks are cut and delivered to the right employees in a timely manner, payroll has to withhold the right amounts for taxes, monitor any withholdings for benefits, and track accumulated vacation time, sick days or advances. All of this must be in compliance with the latest local, state and federal employment laws.
Since payroll firms handle nothing but payroll, they’re experts on this topic. They’re always up to date on the rules and regulations that govern payroll, taxes and benefits, and they can help ensure that every employee is paid correctly and on time. Establishing a professional relationship with a payroll service provider makes it easier for your company to outsource more functions as your business needs grow and change.
Looking to outsource payroll services for your organization? Learn more.