December 13, 2017

If you’re a business owner, you may have made the choice to handle your company’s payroll functions yourself, or at the very least, internally. While this may be the right decision for you and your company, it could prove damaging for others. 

Why could it be a mistake to handle your own company’s payroll? 

Two of the main reasons why handling your company’s payroll could prove detrimental, are a lack of necessary expertise and time constraints. Many business owners feel that either they, or some members of their team, understand enough about payroll for it to run smoothly, but they are often naïve to its complexities. This can lead to disgruntled employees and penalties for not being compliant with the laws, both federal and state. 

As for the issue of time, payroll can take up a sizeable chunk of yours or your employees time when they are recording and calculating payroll, and time constraints often lead to employees consistently not being paid on time. This of course, leads to disgruntled staff and potential, costly lawsuits. 

What are the benefits of outsourcing payroll? 

There are many reasons why outsourcing payroll could be in your businesses best interests, and here are just a few: 

While you may feel that your business can cope with handling its own payroll functions, the evidence does not usually support this. Small businesses can quickly get into a lot of trouble if their payroll isn’t being kept up to date, and their staff aren’t being paid correctly, or on time. Outsourcing payroll is one simple way to end these worries, and be safe in the knowledge that your employees will be paid properly and that you are adhering to government policies and regulations.

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