Payroll is vital for the smooth running of any business, and is about so much more than calculating employee salaries – although that alone can be a daunting task depending on the size of your company. As such, many businesses seek help to make sure they get payroll right, and remain within the confines of the various tax and employee laws.
While managing payroll internally is preferred by some companies, a growing number are choosing to outsource this particular function, and are benefitting from it in many ways; here are just four of them:
- Time, and stress saving
Naturally, the more employees you have, the more time-consuming payroll becomes, and because getting it right is so important, it can be a real headache, too. When you outsource your payroll requirements, you can focus on the core of your business, while they get your workers paid accurately, and on time.
- Tax reporting is made easier
With their simple solutions for calculating taxes and other benefits, an outsourced payroll provider can take care of all those lengthy and complex things like employee taxes, filing quarterly payroll tax reports and distributing tax holdings to the appropriate local, state and federal agencies. Perhaps most importantly, should any errors occur during tax filing and reporting (and it’s rare because they have teams of payroll specialists working for them around the clock), they will take full responsibility, correct it, and pay it, too.
- Money saving
While it may seem counter-intuitive because you’re paying for a service, when companies manually process their payroll, it costs more than if they were to outsource it. Distributing payslips, maintaining payroll software, and upgrading, all mounts up, and because you eliminate these costs when you outsource, you can actually save your business money. Not only that, but your outsourced provider doesn’t require regular staff benefits, such as sick pay or health insurance.
- There are tax benefits to be had
Outsourced payroll providers can help businesses stay compliant with payroll tax laws and changes, and will accurately determine exactly what taxes must be withheld from employees, how much they must pay, and send the money to the appropriate agencies. In this way, they can play a hugely significant role in your business’s payroll compliance journey, save you money and prevent you from facing any potentially costly penalties.
When it comes to payroll, it really does pay to get it right, and by outsourcing your payroll needs with a trusted agency, you can do exactly that.