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:
- It can save time
Even if your business is small, payroll takes up a lot of time, especially if you want it to be accurate and timely, as of course it should be. Outsourcing payroll frees up a whole lot of time for you or your employees to attend to the many other demands of running a business.
- It can also save you money
If you can save time by outsourcing payroll, then you can save money in other areas of your business, as your teams time is freed up to focus on other money-making aspects of the company. As the adage goes, time saved, is money saved. It would certainly be worth evaluating the cost of outsourcing payroll, to see if you could save you money in the long run.
- Outsourcing payroll can be safer
With payroll being complicated and potentially risky, you should try to minimize those risks by working with a professional payroll provider who will guarantee you confidentiality and provide you with a state-of-the-art security system for storing and protecting your company’s data.
- Always be compliant
The world of government tax regulations is one that is often shrouded in mystery, and keeping up to date with all the changes to laws, can be frustratingly time consuming. A professional payroll provider will make it their job to understand every law, whether local or federal, and they will ensure that you remain tax compliant at every stage of the payroll process.
- Payroll professionals have a wealth of expertise
Payroll is understood inside and out by those who work professionally within its realm, and their expertise and extensive knowledge will see payroll always running smoothly for your business.
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.