Managing your business’s payroll is a time-consuming job, and making mistakes can cost you money as well as your good reputation when disgruntled employees that were underpaid complain loudly to anyone who will listen! Even honest mistakes by amateur accountants can create bad feelings in the workplace and sabotage your business’s team spirit! There are still many companies that handle the task in-house, but over the last few years choosing to outsource to a third-party service has been on the rise because it has a number of advantages.
When you outsource your payroll processing all the hard work of managing your employee’s salaries and wages is taken care of for you by dedicated professionals who really know what they are doing. Some payroll outsourcing services exclusively manage payroll, while some others also perform a number of human resources related tasks in addition.
Let’s now examine the advantages of outsourcing payroll processing!
Saves You Time – Doing the payroll takes up a lot of time, especially when it’s being done by an inexperienced person! Payroll officers have the responsibility of keeping track of a lot of information, such as the following:
- Paid time off
- Unpaid time off
- Benefit deductions
- Wage garnishments
- Unpaid time off
- State taxes
- Federal taxes
This would be a challenge for any single employee to take on for an entire work force, particularly if they also have other job responsibilities. Outsourcing your businesses’ payroll takes that burden off of your team and saves you time.
Reduces Costs – Outsourcing payroll saves money, particularly for small or medium businesses because the time and resources incurred by performing payroll in-house nearly always costs more than what you would pay a month to have a professional payroll service handle the process for you, minus the headaches of amateur mistakes.
Tax Accuracy – Tax regulations are usually pretty complicated. The tax laws are always changing, and someone who lacks proper education and training can make unintentional and expensive payroll tax errors. Outsourcing payroll will ensure that the people handling your payroll are trained professionals qualified to take care of any and all required payroll taxes.
Compliance Ensured – In addition to the taxes, hiring a professional payroll service ensures that all of your business’s payroll processes will be in compliance with all of the state and federal rules and regulations.
Security Provided – Cutting-edge computer security is very costly and many small businesses don’t have enough resources to properly encrypt and store their important, sensitive data, such as employee bank account info. Professional payroll services maintain highly sophisticated security measures in order to carefully protect their clients’ critical data.
Direct Deposit Made Easy – Even though online banking has become commonplace, for some reason offering direct deposit paychecks is made difficult for most small businesses who are doing payroll processing on their own. Payroll services have all the resources needed to set up direct deposit for your employees easily, which will make everybody happy!
Have we convinced you yet? Outsourcing payroll services is the smart choice for any business, large or small!
