Posted 3 years ago - by

6 Benefits of Outsourcing Your Payroll Management

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!

Name
Business Email*
Website
Message
0 of 20000 max characters

Related Posts

A Comprehensive Guide to HR Compliance Laws You Should Know

Did you know that the US Department of Labor (DOL) administers over 180 federal labor laws These laws cover workplace activities for about 150 million workers in 10 million workplaces It is each...

Read more...

Los Angeles County Launches New Commuter Tax Benefit for 2021

More and more offices that were fully or partially shut down in 2020 are opening again This is clear If your employees are starting back on their commute for the first time in a year, perhaps a new...

Read more...

Why Talent Pool Management is Important and 5 Ways to Get Started

Every organization has its own unique way of hiring new talent and with competition rising, many have started to look for ways to optimize and expedite their talent acquisition processes One way to...

Read more...

DOL Issues Partial Delay on Tip-Sharing Rule

The Department of Labor issued a final rule on December 30, 2020, that clarified tip credit issues under the Fair Labor Standards Act (FLSA) related to tip ownership and eliminated the 80/20 rule...

Read more...

Paid Parental Leave Benefits Explained

Paid parental leave is where employers grant a paid extended leave of absence to employees, for the birth or adoption of a child Often it is also referred to as maternity or paternity...

Read more...

Paycheck Protection Program Runs Out for Most Businesses – What Programs Are Still Available?

The Small Business Administration (SBA) announced on May 4th that the Paycheck Protection Program (PPP) has run out of money for most businesses The PPP was originally expected to end on May 31st but...

Read more...

Leave a Reply

Your email address will not be published. Required fields are marked *

This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.