Managing payroll can be a huge headache if you’re not properly equipped. And even if you’re prepared, it can be a huge drain on your time and energy. You should be spending time planning short-term goals and establishing long-term growth strategies. But when you’re the one responsible for payroll, you must consider tax regulations, direct deposit procedures, W-2s and 1099s. Here are five advantages your business can gain by outsourcing payroll.
You’ll Save Time
It takes a lot of time to process payroll, and because it requires so much attention to detail, it’s hard to develop an efficient procedure. As your business and staff grow, payroll will become even more time-consuming with more valuable data. So, if you can outsource that responsibility, you can free up that time and devote it to developing a sales strategy, meeting with employees for professional development or improving other efficiencies elsewhere in the company. Time is finite, use it wisely.
You Can Reduce Overhead Costs
Money is also finite. Think about the amount of time you spend each month calculating hours worked, paid time off, sick leave, deductions and taxes. Then you have to print, sign and distribute paychecks and stubs to your employees, process direct deposits and electronic payments, generate payroll reports, and prepare local, state, and federal payroll taxes. When you compare the time you spend on payroll versus the cost of outsourcing, you’ll save a lot of money by eliminating those tedious tasks for yourself.
You’ll Improve Data Security
Managing your own payroll can be risky. You have access to so much data which can be stolen or misused, leaving your company vulnerable to hackers. It’s costly to create a secured network, but when you outsource your payroll, your data is protected with a secure state-of-the-art system.
Guarantee Government Compliance
Payroll mistakes can be costly to your company, and mistakes within the complicated world of tax regulations can be an even bigger nightmare. You’re responsible for any mistakes, which is especially challenging since those rules change all the time. A single error can open you up to stressful audits and costly penalties. But payroll firms are experts in tax law and can guarantee accuracy and compliance. If they make a mistake, they will handle it on your behalf.
Access to More Services
A payroll firm offers additional services besides managing payroll. They can also generate contracts, pay contractors for their services, ensure labor laws compliance, manage health benefits and handle workers’ compensation. Most in-house accountants don’t even come close to handling all that. Hiring a professional payroll firm means you’re putting one of your most costly, time-consuming tasks into the hands of experts. They’ll stand by the accuracy of their work, so you can worry about the bigger picture.
Ready to learn more about the benefits of outsourcing payroll? Contact Extreme Staffing and Payroll Services today to learn more about how we can help your business spend more time focusing on your day-to-day goals.