The Advantages of Outsourced Payroll for Your Business
AdminAssistFebruary 2, 2022
Did you know that25% of workershave had errors with their paycheck? Additionally, companies that have less than 20 employees are more likely to be late with issuing paychecks. This can lead to your employees being unhappy and cause costly fines.
Outsourced payroll services are a great option for businesses of every size. You hire an individual or company to handle all aspects of your organization's payroll.
Read on as we discuss the benefits of outsourcing payroll and where you can find payroll outsourcing services.
Having your in-house employees process your payroll can be time-consuming. In addition to their everyday tasks, they'll have to stay on top of the following:
Paid time off
Terminations and new hires
State and federal regulation changes
Every year, a lot of time goes into preparing W2s for your employees and making sure they get sent out in a timely manner.
By outsourcing payroll, you and your core employees can concentrate on your main tasks. It frees up accounting and human resources personnel to focus on strategic tasks that increase your bottom line. No matter how many employees you have, payroll tasks require a lot of attention and time.
Free up extra time as a business owner by hiring a payroll company. You'll only have to make contact with your payroll services company when they require approvals.
Reduce Your Overall Costs
Working with a payroll provider can reduce how much you spend on processing payroll. Large corporations can afford to have entire departments devoted to payroll processing. Most small to mid-sized businesses can't afford to hire in-house employees to handle payroll.
Think about how much time you and your employees spend on your payroll tasks. This includes the following activities:
Printing, signing, and handing out paychecks
Calculating payroll for each pay period
Program and computer software maintenance
Support and training
Remitting and preparing payroll returns and taxes for government agencies
W2s, garnishments, etc.
Generating in-house reports
Calculate a rough estimate of how much time and money you spend doing any payroll taxes. Compare that amount to how much-outsourced payroll services would cost. You'll likely spend less on a payroll service company than you would be hiring in-house employees or continuing to do the tasks yourself.
Avoid Costly Errors and Mistakes
Many small to mid-sized businesses encounter costly penalties for payroll mistakes. In addition to being expensive, payroll errors can also anger your employees. They can also raise red flags with the IRS.
Small business owners aren't experts in government tax regulations. However, they're legally responsible for any errors they make in payroll processing or taxes.
Federal and state regulations and rules are constantly changing. It's not reasonable for business owners to stay in the loop with these changes.
Professional payroll servicecompanies have to stay current with the changes in tax rates and rules. They're less likely to make a payroll error than your in-house employees.
Some payroll agencies will also assume the cost of errors if they made any late payments or incorrect calculations. Their staff will stay up to date on all changes in tax law that might affect your organization, guaranteeing you stay in compliance.
Access to Payroll Experts
Big corporations typically have a team of payroll experts who handle various tasks in payroll and human resources. Take advantage of the expertise they get to experience by outsourcing your payroll services.
A payroll company will have a team of individuals who are experts in all things related to payroll. They can assist you with a variety of tasks that are related to payroll and HR.
Processing payroll can be risky. Even if you have employees that you trust, there's always a risk of:
Embezzlement of company funds
Tampering with your business's files for personal gain
Monitoring your in-house employees can be very time-consuming for business owners. Payroll service companies have tools to identify and alert you to payroll fraud.
A high-quality payroll company will also provide you with a safe place to store your payroll data. They have innovative technology that stores and protects your data.
Offer Easier Payment Options for Your Employees
It can be difficult for organizations to offerdirect depositsif they don't use a payroll service. Most employees want direct deposit in lieu of paper checks. Not having to make a trip to the bank to receive their paycheck is an added bonus.
Having direct deposit also reduces error-prone and time-consuming paper handling. You also won't have to deal with reconciling paper checks each month.
Additionally, you'll reduce your risk of payroll fraud. Paper checks can be counterfeited or altered.
A paper check includes your business's bank account number. With direct deposit, your account information stays confidential.
Tap Into New Technology
Technology limitations in regards to payroll processing are another thing that plagues small businesses. Technology can help you increase your productivity, but it doesn't do you any good if you don't know how to use it.
Payroll processing companies have access to the latest innovative technologies in the industry. For example, cloud computing has changed the face of payroll processing. Your payroll service company can do more for you at a faster rate with new technology.
Increase Your Peace of Mind
When you work with an outsourced payroll company, the pain and hassle of dealing with those tasks are eliminated. All you have to do is provide the company with basic information and they'll take it from there.
You'll have the guarantee of mistake-free tax filings, payments, and payroll. Don't have to worry about you or your employees getting everything done on time. Reduce your headaches when you partner with a qualified payroll service agency.
Partner With an Outsourced Payroll Agency
Outsourced payroll services are a great way to increase your bottom line while ensuring your organization stays in compliance. At AdminAssist, we specialize in payroll services for staffing agencies.