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How Outsourcing Payroll Can Help Your Company

June 13, 2019

There are millions of companies throughout the U.S. outsourcing their payroll, but why do so many businesses choose to do this, and how does it benefit them? Read on to know more about the benefits of outsourcing payroll and learn how it could help your company:

Outsourcing payroll can save time:

Payroll can be a big demand on any business, large or small, and getting it right is essential for a satisfied workforce. Large amounts of data are required every pay period, and if you continually have employees, the demand is constant. Double checking for errors can be time-consuming and can detract from time spent on other important tasks within a company and can even detract from serving valued customers.

Outsourcing payroll gives business owners more time to focus on the things that matter the most to them, and in most instances, they need only contact their payroll provider once each pay period.

Outsourcing payroll can save money:

Many business owners think of time saved as money saved, and when you consider the amount of time required to calculate payroll each pay period, print, sign and distribute pay checks, generate reports for in-house and accountant use and prepare and remit payroll taxes, you can see how much money might be saved by outsourcing such tasks.

If you wanted to go into further detail as to how cost-effective outsourcing payroll might be for your company, you could always conduct a per-payroll-period time/cost analysis.

Want to enhance your security?

No matter how much you trust those within your company who conduct payroll for you, it’s a complex and potentially risky side to business operations, and identity theft and embezzlement are a very real threat. There are also concerns about the safety and security of payroll data when added to the server or network of a small or cheap payroll provider, giving you more reason to use a trusted and well recommended firm with plenty of experience. Redundant backup and multiple server locations are just two of the reasons why you should choose a quality payroll provider to help you keep your important employee and company data private and secure.

Outsourcing payroll is a guaranteed way of complying with government regulations:

Most small businesses are not well versed in the complex world of government tax regulations, yet they legally responsible for any cases of misrepresentation or a failure to accurately report employment taxes to federal and state government agencies. Any mistakes that are made can quickly lead to audits and costly penalties, and with the rate at which government rules and regulations change, there’s little hope of the average small business owner being able to stay on top of them.

Outsource payroll, however, and you’re virtually guaranteed to comply with state and federal rules, giving you peace of mind every payroll period.

You gain expertise:

Payroll professionals deal with pay processing day in day out and specialize in its complexities, meaning that there is little they don’t know, and therefore little for them to get wrong. In other words, with their expertise, you’re in safe hands.

With the potential for huge savings in time and money, greater data security and the knowledge that your payroll is in experienced hands, outsourcing seems like something of a no brainer.

 

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