Top 10 Reasons to Outsource Payroll
For many businesses, an in-house payroll service is a money burner.
Whether your business has less than 20 employees or more than 200, there is a very good chance that you can save money by outsourcing your payroll operations. Determine how many hours your employees are devoting to payroll-related activities, calculate how much you are spending and compare the amount to the cost of an outsourced solution. Also, be sure to factor in the money your business spends on tasks like printing creating tax documents, and so on. You will probably be surprised by the result.
Payroll management is a time-consuming activity. With this burden removed, your employees can focus on doing more productive things, and you may even be able to trim your staff’s size.
Payroll mistakes can be painful, angering employees and — more ominously — the government. A good payroll services provider is far less likely to make a serious error than your in-house staff.
In-house payroll activities function as reliably as the people doing the work. With a payroll service, output speed and quality will not vary in accordance with vacations and illnesses. Also, you will not have to spend time helping new hires understand your business’s payroll system.
Since payroll services providers are specialists with vast technical resources at their disposal, they can process even the most complex payrolls at lightning-fast speed. Unlike most employers, they can also accommodate a temporary influx of seasonal workers without acquiring new systems that will remain dormant the rest of the year.
A good payroll services provider will know all the ins and outs of payroll-related tax laws and regulatory mandates on all levels. Your employees could try to achieve the same level of understanding, but it would take a considerable investment in time and effort.
If salaries are delayed or paperwork is mishandled, it is the payroll services provider’s responsibility to fix things. You can always change your service provider quite easily. Try firing, hiring and training an in-house payroll staff in anything less than several weeks.
Boring, repetitive payroll work can act like an anchor on your business. Your staff, when freed of rote payroll responsibilities, will be free to focus on other, more creative work.
Do you have the time and energy to closely supervise your business’s payroll for time and rate abuses and other shady activities? Most payroll services firms have technologies that can spot and alert clients to various types of payroll fraud, such as payment manipulation and “phantom workers”.
10. Peace of Mind
There is a lot to be said for the peace of mind that outsourcing payroll services can bring to a business owner or manager. No headaches, no hassles: You are left to focus on running a profitable business.