As your company begins to grow, managing payroll for your employees can become tiresome, expensive, and complicated! Doing your payroll in-house requires you to calculate, file and pay federal, state, and local payroll taxes accurately, keep up with changes in tax regulations to ensure you are staying compliant with the law, cut and print your own checks, and assume responsibility for any penalties associated with tax filing omissions.
But don’t be discouraged – payroll is a business function that CAN, and probably should, be outsourced. Here are some advantages to outsourcing your payroll management to consider if you are on the fence:
1. It’s cheaper
Save money on overhead costs. Each pay period, administering payroll involves the following tasks:
Calculate employee hours, deductions, PTO, sick leave and taxes
Print, sign, and distribute paychecks and stubs to employees
Process direct deposits and electronic payments
Prepare and submit local, state, and federal payroll taxes
In addition, the employee(s) who processes the payroll is responsible for keeping up-to-date with new tax rates/laws. This is paid time that could be allocated to different areas of their job.
2. You’ll stay compliant with federal and state law
There are many tax codes and payroll regulations that you need to stay on top of and understand. Avoid any mistakes and the legal responsibility of inaccurate reporting. Hiring an outsourced payroll service can help to minimize your risk of these mistakes and wrong calculations.
3. You’re supported by experts
Payroll companies have a team of experienced professionals in the payroll and HR industry who are likely staying current with the ever-changing tax codes and payroll regulations mentioned above. You’re guaranteed expert advice, resources to refer to, and answers to your questions.
4. Oh, the time you’ll save!
Significant labor hours are spent processing payroll and W2s – it is not a productive use of time for your business, but it needs to get done. Your human resources or accounting personnel responsible for payroll could instantly free up their time to focus on more strategic tasks by allowing a payroll service bureau to take over this part of the job.
5. Employees have access to their own information
Employees are given access to their own personal information with payroll service bureaus who also have an HRIS (Human Resource Information System) product. This eliminates any delay in getting employee information they need. They can also update their information (e.g. address changes) and enroll for benefits – saving both the employer and employee time.
6. You can focus on your core business
Ultimately, with the time and money saved by outsourcing your payroll, you can focus on what’s most important – your company’s mission. It’s one less thing for you to worry about!
If you’re interested in outsourcing your payroll, contact us today!