Big Benefits of Outsourcing Payroll Services for Small Businesses
If you’re anything like so many other small businesses, you spend most of your day balancing multiple tasks. Time is money and, in the end, automating as many tasks as possible allows you to save time and energy so you can focus on running and growing your business.
Outsourcing payroll is when you bring in a third party provider to manage any payroll-related tasks. Not only does this save you time and money, it could also save you from potential compliance issues down the road. There’s no need to download and learn software or train your staff on tax regulations.
As a flourishing business, there are many invaluable benefits of hiring a company to cover your payroll.
Benefits of Outsourcing Payroll
Boost Office Productivity
The first benefit that comes to mind when you think of outsourcing payroll is likely how much more you could get done if it wasn’t sitting on your to do list. Processing payroll is time consuming, and it comes with a learning curve.
When you decide to outsource your payroll, you can focus on business development instead of sorting through timesheets, reconciling hours, and calculating wages. You have to track and verify hours all while ensuring you’re in compliance with local, state, and federal laws and regulations for each employee. This can take up a significant amount of time and bandwidth, especially as you expand your business.
Reduce Your Business Costs
Many managers and employees in small businesses have to split their attention between different roles. They often don’t have a dedicated HR or payroll department to handle the process. If you currently assign payroll tasks to one of your employees, you’ve likely realized it eats up most of their working hours leaving little time for other meaningful tasks.
Not just any employee can handle your payroll; they need to be properly trained on how to properly process payroll, including tax rates, facilitating tax returns, and ensuring minimum wage rates are followed. Outsourcing your payroll allows you to benefit from expert payroll knowledge and ensures full confidentiality for your employees.
Reduce Payroll Errors
Managing payroll responsibilities is more than ticking boxes and finally putting your 10-key skills to use to input numbers. If you’re committed to using an existing employee to manage payroll, you have to invest in the initial courses to get them up to speed and then ongoing training to ensure they stay up to date with ever-changing regulations. Without the continued education, you open your company up for potential mistakes, which can be costly to correct.
Third payroll companies provide the benefit of expert knowledge and experience in not only the current best payroll practices and regulations but also any upcoming tax changes you may need to budget for.
Protect Company and Employee Privacy
Payroll documents contain sensitive information about your company and employees. This information could be used for identity theft or even taking money directly from the company or an employee’s banking account if it should fall into the wrong hands.
In-house payroll comes with many unforeseen risks for small businesses such as the security of your server and protecting employee and company data. On the other hand, when you outsource to a professional payroll company, you benefit from their specialized software, which provides extra security, alerts you to potential fraud, and protects your precious data.
Guarantee Compliance with Local, State, and Federal Regulations
Taxes are a concern for any business. It’s also a fundamental part of payroll responsibilities. You may have some employees who qualify for certain tax deductions, while others are awarded benefits such as childcare allowances.
The constantly evolving laws and regulations surrounding payroll can be confusing and, at times, they seem to overlap one another. Payroll outsourcing provides you with confidence that your paperwork falls in line with the most up-to-date laws and regulations. As experts in payroll, a third-party provider will navigate all information and updates regarding tax regulations. They can also help you take advantage of special small business grants, loans, etc., such as the business protection created to ease the financial burden of COVID-19.
Choosing the Right Payroll Provider for Your Business
Outsourcing your payroll can be a game-changer for your small business. If you wish you had more time for meaningful business growth tasks, struggle to understand or stay on top of payroll, or would wish your payroll was more secure, it’s time to outsource to a professional provider.
There are a few things to consider when choosing a payroll provider. With thousands of payroll processing companies out there, it’s important to consider which benefits of outsourcing are a priority. You may prefer a provider who specializes in your industry or perhaps a local company who can take the time to get to know your business.
When you “interview” potential payroll providers, make sure to discuss a timeframe for regular payroll reports to ensure your current information for your general finances. Another point of interest is reputation. Payroll providers deal with sensitive and confidential information, so it’s imperative to find a company with a stellar reputation.
Are you looking for a more all-inclusive solution for your company? Some payroll companies also provide additional human resources services, which means even more time to focus on the rest of your to-do list.
Every small business can benefit from outsourcing their payroll services. It helps streamline your daily tasks, allowing you to focus more on day-to-day business operations and gives you peace of mind.
Are you ready to make room on your to-do list? Master Payroll Solutions is the premier payroll provider of South Jordan, UT providing online timekeeping, payroll compliance, and more. Get a free payroll price quote to get started.
