5 Benefits of Outsourcing Payroll
Aug 3, 2015
Aug 3, 2015
To businesses not outsourcing payroll I ask, why not? Many decision makers see it as an expense. Figure out how many hours your employee(s) are devoting to payroll-related activities, calculate how much you’re spending and compare the amount to the plans offered by payroll-services providers. Also, be sure to factor in the money your business spends on tasks like printing and distributing checks, creating tax documents, and the like. You’ll probably be surprised by the result.
Next, I encourage any business owner who still processes payroll internally to consider these benefits.
1. Insight: Payroll tax compliance is a bear! There are hundreds of IRS tax regulations issued a year. A good payroll-services provider will know all the ins and outs of payroll-related tax laws and regulatory mandates on the federal, state and local levels. Your employees could try to achieve the same level of understanding, but it would take a considerable investment in time and effort.
2. Accuracy: Save time and money! If you aren’t accurately collecting or reporting payroll taxes, fines and interest fees will be incurred. Penalties for errors, omissions or late payroll tax filings can be very costly. Improperly paid payroll taxes can result in an auBenefitsomatic penalty of 2 to 10 percent with the percentage increasing over delayed payment. Keeping track of benefit accruals, garnishments, new hires and terminations as well as federal and state regulation changes can be daunting tasks, and you may even be able to trim your staff’s size.
3. Reliability: The hassle and pain often associated with processing payroll is gone! Payroll companies have a full staff on hand to process payroll. Leverage outside payroll expertise. The most valuable payroll companies have experts who handle many areas of human resources. Also consider what you would do if your bookkeeper/controller walks out the door taking their knowledge with them. Avoid an internal employee defrauding you, too, who would have the capability of covering up a scam with having access to bank accounts.
4. Morale: Go electronic! Offer the convenience and security of direct deposit services and online access to their employee information. Many employees see this a value-add or benefit while seeking employment.
5. ACA: One more piece of information to file and report! From the passing of the Affordable Care Act, applicable large employers are required to report and file starting in 2016 for the calendar year 2015 of health insurance coverage offered to their full-time employees. Businesses are looking to payroll companies to assist with the compliance due to their software and capabilities already in place. The projected work time to complete forms 1094-C and 1095-C are time consuming to say the least.
I challenge anyone to present better or more reasons to not outsource their payroll. I welcome any conversation with a business owner to consider the benefits of outsourcing payroll. As a business our self, we understand the challenges and ongoing changes of running one. We’re here to simplify your daily business, because our know-how for workforce efficiency in staffing, payroll and resource management which makes us a partner that delivers exactly what our name declares.