Finding a reliable and budget friendly payroll provider can take time and effort, not to mention the work that will be involved in the transition to working with a third party, so is it worth it? We think so, and here are 3 reasons why payroll is best left to the experts:
- It allows you the time to focus on your core business
While payroll doesn’t have a direct effect on sales, it’s still a vital part of any business, and when it isn’t functioning efficiently, it can end up costing you in both time and money. Penalties apply if state and federal rules and regulations aren’t followed and keeping up with these alone, can be time consuming. Hiring new intake has its own set of rules, not to mention workers compensation insurance and unemployment compensation. This all takes considerable time and energy and your focus will certainly not be on the other important elements of your business.
Outsourcing payroll allows you, as the business owner, to shift the focus back to your core activities without the worry of tax compliance or employees not being paid accurately and on time.
- You will be able to use the latest technology and benefit from their expertise
Todays’ employer relies heavily on technology to operate their businesses efficiently, and without such technology as direct deposit and self-service access to payroll for employees, even they will not be satisfied. Mobile devices are also meaning that technology is at the forefront of successful businesses, and keeping up with this and indeed, having access to it, is far easier when you engage the services of a payroll provider.
The expertise that a payroll provider can provide you with is priceless, especially as employers now must deal with thousands of federal, state and local tax laws. Not only are there thousands of rules and regulations, but they are constantly changing, and keeping on top of them and remaining up to speed with the law, is an uphill battle. Outsourcing payroll means that a team of experts who pride themselves on being up to date with all laws related to payroll, will simply ensure that you’re consistently compliant and never face costly penalties or fines.
- Costs and risks are significantly reduced
It’s a lesser known fact that many businesses are overpaying their employees by around 4%, and this is usually down to discrepancies between the employees’ time record and an accurate one. Naturally, using the services of a payroll provider can help limit these errors and ideally, stop them.
As well as these costs, there are the risk associated with violating reporting and other requirements, with many small businesses paying penalties at an average of $850 per year for late or incorrect filings.
If you can find a good payroll provider, then they will usually prove incredibly useful. Not only will they give you peace of mind, but they’ll give you more time to spend on other elements of your business that may have fallen behind due to your payroll commitments.