Small businesses are trying to get lean and mean by streamlining some of their business functions. One dilemma that many small business owners face is whether or not to keep in-house tasks or to outsource the functions that don’t add value to the core of their activities. Human Resource functions like payroll are typically handled in-house, but outsourcing payroll holds a number of benefits.
Here are a few reasons it might make sense for your small business in Greeley to employ payroll services.
Most companies, especially small businesses with under 20 employees, can save money by outsourcing payroll duties. Take the time to add up the amount of time employees spend on payroll and see exactly what it costs. Don’t forget to include the cost of printing the checks, distributing the checks, bookkeeping and creating the tax documents. You would be surprised to see the real cost of payroll. In many cases, payroll services are able to offer this service for less than what you now pay. The reason why is because payroll services employ best practices and use sophisticated software.
A thicket of IRS rules and regulations come with payroll. By outsourcing your payroll, you shift the legal responsibilities from your business to the payroll service. It is estimated that up to 40 percent of small businesses pay penalties to the IRS each year for improperly filing payroll taxes. That is money out of your pocket. A payroll company is far less likely to incur a penalty charge for inaccurate or late paperwork. In fact, many payroll services back their work with a guarantee.
Even with trusted employees, payroll processing is a complex and risky endeavor. There is always a risk of identity theft, tampering with records for personal gain or embezzlement of funds. And you have to wonder just how safe and secure your payroll data is on your company’s network or server.
On the other hand, outsourcing your payroll to a trusted company means your payroll data is safe, secure and confidential.
Attending to payroll demands a great deal of time and attention to detail. One pay period ends and another immediately begins, it’s a vicious cycle that requires a considerable amount of attention, taking away time to do other important functions. Outsourcing your payroll frees up precious time, giving your employees the chance to work on other projects.
Are you using the latest version of your payroll software? Do you have the most recent tax tables installed on your computer? These are all questions that you must ask yourself. You are quite busy as it is and you don’t have time, or the patience, to always check for software updates. And if you are using a dated tax table, you could be making mistakes and subjected to IRS penalties. Just another headache you have to deal with. But with a payroll service, you can rest easy at night knowing this is one less thing you have to worry about.