Still doing payroll in-house?
Payroll can be a complex process for any business. It involves more than collecting employee hours and calculating wages. Here’s the thing, payroll administrators have to factor in federal, state, and local requirements when processing healthcare deductions, Social Security, employee benefits, and taxes.
Add a growing remote workforce and the ever-evolving labor code to this, and some businesses end up with a convoluted nightmare on their hands. As a business owner, you have other responsibilities that go beyond payroll tax filings and distributing W-2s each year. Maybe it’s time you brought a third party on board.
Not yet convinced? Here’s how a payroll management company can help you stay on top of a quickly evolving workforce.
1. Save your business money
Isn’t this every business’s number one priority? Saving money without compromising quality will give your business some financial wiggle room and give you the competitive edge you need to thrive. Most business owners hesitate to contract a payroll management company, thinking it’s more financially prudent to do in-house payroll processing.
But, that’s not the case. Think of the number of hours your staff spends managing payroll every year and calculate how much you pay them for this one job. Plus, consider the expenses that go into maintaining payroll software, including licenses and server maintenance.
Then compare the total costs to the expense of hiring a payroll management company. You’ll soon find that it’s time to outsource.
2. You can bank on payroll management firm’s expertise
As mentioned, there’s a lot that goes into payroll processing. Business owners must stay up-to-date with changing tax and labor regulations. Any mishap on these matters will expose your business to additional liability and cost you money to fix. For instance, sending inaccurate or outdated information to the IRS can put your business at risk of fines and other penalties.
With all these rules and regulations, it’s in your best interests to bring in the experts. Working with an experienced payroll management company gives you access to their wealth of knowledge and expertise. When it comes to payroll, even the smallest details can significantly impact your bottom line.
3. You can now focus on core business
The truth of the matter is: payroll isn’t the arm of the business that brings in money, and unless you’re a payroll management company, it’s unlikely to be a core function of your business. And because it’s a necessary, non-core function, it takes away resources from the revenue-generating activities, whether that’s time or labor hours.
That said, outsourcing payroll functions to a third party allows you to free up key staff to help you focus on what really matters: growing your business and bringing in more customers.
Additionally, a payroll management firm helps you avoid the unexpected losses associated with making a payroll mistake. This way, you don’t have to divert your attention from core operations to deal with unforeseen audits.
4. Extra company security and protection
Outsourcing payroll greatly reduces the likelihood of any shady internal activities. Even with the most trustworthy employee, payroll processing carries a hefty risk of theft and embezzlement. Stories of employees tampering with records are not unheard of.
Another security risk has to do with your data. In today’s business environment, cyberattacks are pretty commonplace. Any good payroll management company will have taken the necessary precautions to protect their clients’ data, including advanced infrastructure and servers in multiple locations.
Perhaps this is one of the greatest benefits of outsourcing payroll. It’s an extra way to back up all your essential data in case of a breach, and you’re assured of confidentiality.
5. A payroll management company adapts as your business expands
Payroll is not a one-size-fits-all endeavor. When choosing a payroll management company, it’s important to consider its capacity for growth. Your business needs won’t be the same one year or five years from now.
You need a company with the agility and expertise to define and document your processes as your company grows. For instance, the COVID-19 pandemic led to a rapid shift to remote work. With employees scattered in different cities and states, you would require a company with flexible payroll processes.
A top payroll provider does all this and more to ensure your business remains compliant at all times.
Take Your Business To The Next Level
That’s what payroll processing does. It creates the opportunity to scale and expand your business operations no matter the size of your business. A payroll management company is equipped and ready to make your business operations easier. And you don’t have to worry about legislative changes or the complexities of a changing workplace.
Doesn’t matter if you’re a start-up in need of cost-efficient payroll processing or an enterprise looking to expand internationally; outsourcing payroll can help you scale your business to great heights.