Running a successful business takes effort, expertise, and above all else, time. Among many other benefits, business owners who outsource their payroll are usually looking to free up their time, so they can put that energy into another aspect of their business.
What Is Payroll Outsourcing?
Payroll outsourcing is when an organization uses a third-party provider to complete all or part of its payroll processing needs. These needs can include payroll processing and tax management, time and attendance, and various Human Resource Services.
The Top 9 Reasons to Outsource Payroll
There are many reasons to outsource your business’s payroll including saving time, money, and many more. The following are some of the key reasons businesses will outsource payroll:
1. Save Valuable Time
Whether you have a business of 10 or 10,000 employees, performing standard payroll duties takes substantial time to learn regulations, collect timesheets, and make the appropriate wage calculations. Time that may be better utilized when allocating to other facets of your business. This extra time is something that can be used to boost your sales and marketing efforts or any other aspect of your business that can benefit from additional time.
2. Minimize Payroll Errors
Hiring a professional accountant can be an expensive endeavor and you will need to back them with a solid team of specialists depending on the size of your business. Training your own team is also an option, but that usually requires mistakes during the learning process and a lot of time. Outsourcing eliminates the need to shell out large amounts of cash in hiring a professional accounting team and reduces errors made by inexperienced accountants. Payroll providers also automate much of the labor-heavy aspects of payroll, which reduces the number of mistakes made by manual entries.
For companies that already have a team of accountants, outsourcing to a qualified payroll provider can aid your company. Helping ensure that deadlines are met, and mistakes are avoided.
3. Improve Payroll Data Security
Performing in-house payroll processing can result in unwanted effects. While the risk of important information being stolen is low, it is not zero. For example, using a company server or network can allow hackers to steal important information. Trusting a secure payroll company will help mitigate risk and allow you peace of mind.
4. Gain Access to Expert Knowledge
With fed, state, and local payroll tax laws, working on your company’s payroll in-house can become complex. Working with an established payroll processing company allows you to dip into their knowledge built up from their years of experience. This helps reduce the chance of errors or penalties.
5. Get Tailored Reports
Having payroll reports tailored to your specific company’s needs makes it easier to see what you need to know and none of what you don’t.
6. No Risk of Losing In-House Staff
Even the best companies lose employees. New opportunities arise, circumstances change and some employees will leave. The right payroll provider will have a staff of professional payroll specialists.
7. Eliminate the Need for Paid Software and Upgrade Costs
Like any other industry, payroll software continues to become more innovative as time continues and with that innovation comes additional costs. With an internal team, you have to personally invest in the software costs and any associated upgrades. When you choose to outsource, it is up to the outsourcing company to have the most up-to-date software. Which reduces stress and other costs.
8. Reduce Overall Costs
There are a lot of factors that go into payroll besides just software and upgrades. There is also calculating pay, accounting for state and federal regulations, and accounting for any associated deductions. Hiring a full team of in-house payroll professionals may be more expensive than hiring a third party. Not to mention, penalties and fines do happen as a result of inaccurate payroll processing. Hiring an experienced payroll service provider eliminates the risk of those expenses.
9. Reduce Stress
Payroll can be a stressful subject. If you make a mistake an employee may not get paid in time or at the right amount. Using an experienced payroll professional helps to reduce the stress of you taking on that task yourself. The right third party will also give you peace of mind in knowing that your employees will be paid on time and at the right amount.
Choosing the Right Payroll Provider
When choosing a payroll provider, you want to be sure to do your research. Look at reviews, industry experience, their software systems, and how good their customer service is. Once you consider these variables, you can make an informed decision on which payroll provider is best suited to your needs. If you would like to explore options today, consider a trusted payroll provider with a proven payroll system, industry experience, and a track record of unmatched customer service.