Payroll is important for your business. After all, whether you have one employee or 100 employees, they all want to be paid. They’d like to be paid correctly and on time as well. In addition to this, payroll administration is tied to your accounting and budgeting. What happens if you need someone to work extra shifts and end up paying overtime? How are you calculating benefits like sick days and vacation time?
Another reason payroll is important is because proper administration helps you avoid penalties and audits from the IRS. Your payroll tax deductions will need to be collected and remitted to the IRS on a regular basis. If they’re not, or if you’re remitting the wrong amounts, it could spell trouble for your business.
It’s easy to see why payroll is such an important task for any business. Of course, it can also become a time-consuming, complex task, which could lead you to a “payroll panic.” Maybe your team is regularly making some mistakes. Perhaps they’re just not getting things finished on time. Any which way, payroll has become a nerve-wracking task. How can you fix it? The answer is easy: outsource. Here are a few reasons to outsource your payroll.
1. Your People Get Their Time Back
Small business owners often wear many hats, as do their employees. You may be head of the HR department in addition to being the CEO, bookkeeper, and head of marketing. Or, you may only have one or two people looking after payroll, even if you have dozens of employees.
Since payroll can be so complex and time-consuming, the people charged with administering it may not be able to keep up. They may need to neglect other tasks in order to focus on payroll.
Outsourcing helps them get their time back. Payroll is still completed, and other vital jobs receive the attention they deserve.
2. You Can Save Time
Outsourcing payroll can also save time. In addition to freeing up your staff to work on other tasks, the experts administering payroll can usually complete it faster, no matter how complex the task is for your business.
This is the result of a combination of expert knowledge and the latest tools. Your payroll provider may use a better payroll administration solution, which allows them to automate many payroll tasks. Their team may have an encyclopedic knowledge of tax credits you can take advantage of, and they may be able to keep up compliance with greater ease.
3. Make Fewer Mistakes
Although payroll often seems like a straightforward task, it’s often much more complex than it appears at first glance. As a result, even the most expert and talented HR and payroll staff can sometimes make mistakes. The error rate increases if certain tasks are done manually, instead of being automated. The picture worsens if your people are rushed.
With a payroll provider, you can be sure the latest technology is helping the team identify and eliminate errors. Automating certain tasks can reduce the number of errors and speed up the process at the same time. The expert team will also check and double-check their work to ensure accuracy.
4. Save Money
Outsourcing payroll is also a good way for small businesses to lower their overhead costs and save a little money. How does outsourcing help your budget? First and foremost, you don’t need to invest in new technology. The provider will supply these.
Next, the reduction in time spent on payroll also lowers costs. In addition, the lower error rate means you’re less likely to need to spend time and money fixing a mistake. It also means you’re more likely to avoid penalties from the IRS.
If you’re panicked over payroll, know there’s an easy solution at your fingertips. Outsourcing payroll is a smart move for businesses of all sizes.