Unless you are a business solely run with only one person you will have a payroll to run. This can be a complicated operation involving forms, taxes, filing by deadline, checks, direct deposits and much more. It is no wonder that many companies have chosen to use payroll outsourcing as a solution and here’s why.
Making more of your time
By using a payroll service you can free up more of your time to pursue more important tasks. Payroll is a time consuming process that it is only lengthened by its complications. Passing this task on to a payroll company means more time for you to concentrate on value added and revenue generating activities.
Reduce your costs
You can greatly reduce the cost of your payroll by payroll outsourcing. Research has indicated that companies spend around $2600 per year on labor costs alone when it comes to payroll. This is based on a company with ten employees. This is also not to mention the cost of software, stationery etcetera that is needed to run your own payroll.
Avoid IRS penalties
Late or incorrect filing and payments catch out on average 40% of businesses every year. This results in them being fined on average $845! However employ the use of a payroll service and they will give you a tax guarantee. This ensures that none of their customers will incur penalties as they take responsibility for penalties when they do occur. In many, many cases saving this cost alone will justify paying for your payroll to be done by someone else.
Save on aspirin
Payroll can be a major headache in the best case and at worst a horrifying nightmare! Businesses who go down the route of payroll outsourcing eliminate this source of personal pain.
Most small companies who handle their own payroll cannot or do not offer direct deposit. This is where your wages are deposited straight into your bank account and most employees prefer this method. Providing pay in this manner eliminates time consuming and error prone paper and cash handling. All payroll service companies will offer this way of paying your employees.
More aspirin saved
Technology can be a major cause of headaches especially for small businesses. They are always concerned with issues such as have they got the right and most recent payroll software and the up to date tax tables. Payroll outsourcing eliminates these worries and the possibility of hefty fines for use of the wrong tax tables.
Make use of expertise
Most businesses do not have the time to keep up with all the changing regulations, withholding rates and government forms. By using a payroll service businesses, especially small, can take advantage of expertise that was unavailable to them before.
Avoid losing expertise
If your book keeper or payroll controller gets a new job they will walk out of the door with all their payroll knowledge and all your companies. Using an outside payroll service eliminates the chance of this happening.
There are many more ways that payroll outsourcing can benefit your company but the afore mentioned are probably the most important and influential ones. There really is no need to struggle with payroll alone when you can pass it all on and have it dealt with efficiently by experts.