Is your business having a hard time with payroll? Are you looking to save money, time and frustration? Here are the 8 benefits of outsourcing payroll:
1. Free Up Time
Manual processing of payroll is a time-consuming process without a value-added benefit. Outsourcing payroll will make staff time available to work on important revenue generating activities or to assist with other important operational processes. Business experts recommend that the number one outsourcing opportunity is payroll.
2. Cost Reduction
The direct labor costs associated with processing the payroll will be significantly reduced by using a payroll provider. Further cost reductions are available by having the payroll provider generate the W2s and a report about the vacation hours available and the time off taken by each employee. The payroll provider can generate many valuable reports.
3. Avoid IRS Penalties
The IRS claims that 40 percent of small businesses pay penalties every year for either incorrect or late filings and payments. Most of the nation-wide payroll services provide a tax guarantee that ensures their customers will not incur any penalty levied by the IRS for incorrect or late filings. IRS problems can be difficult to work with.
4. Alleviate Pain
The manual preparation of the payroll is a pain for most small businesses, and it can be a nightmare for some. The personal pain can be a headache or even ulcers. The frustration can result in the weariness that detracts from the core business.
5. Avoid Outdated Technology Problems
Small business owners need to have the latest payroll software and the latest tax withholding tables. The IRS problems resulting from outdated technology will be troublesome.
6. Direct Deposit Can Be Offered
Outsourcing payroll will make direct deposit easy and without any work on the part of the business. Direct deposit is a benefit for the employees, and it is also a benefit for the business. Direct deposit significantly reduces work for the business, and it also eliminates reconciling the payroll bank account every month.
7. Outside Payroll Expertise Is A Valuable Resource
The outside payroll service will keep abreast of the constantly changing regulations, withholding rates, and state and federal government forms. Outsourcing payroll provides valuable expertise that would be costly to obtain with an in-house employee. A business can acquire a lot of knowledge and a dependable source of help when payroll is outsourced.
8. Avoid The Problems When The Payroll Coordinator Walks Out The Door
A business is vulnerable when the payroll is handled by one employee because they may leave at any time and without notice. Outsourcing payroll will eliminate this risk.