Did you know that 4% of companies plan to outsource payroll in 2023?
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.
Compliance and Tax Regulations
Payroll tax compliance is a bear! There are hundreds of IRS tax regulations issued every 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. 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. In the case of unpaid taxes, the average penalty for businesses is 5%, but it could potentially rise to 25% if it is not paid. Can you afford not to have a partner?
The hassle and pain often associated with processing payroll are 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 by having access to bank accounts. With our team of Certified Payroll Professionals (CPPs) and dedicated account managers, being recognized as one of the best payroll providers in the industry, we will be sure to help you pay your people on time and remain compliant.
According to a recent survey, it takes a single employee 1-2 full days of work to process payroll. This can be a time-consuming and costly process for your business. With technology today, it is convenient to have a system in place that allows direct deposit services and online access to employee information. This will lessen your employees’ workload of sending paper checks and allowing them to focus on what really matters. Your employees will thank you for this and incoming employees will see this as a value-add or benefit while seeking employment.
Reliability in One System
You need an easy-to-use system that will store accurate data and help keep track of benefit accruals, garnishments, new hires, and terminations as well as federal and state regulatory changes and keep up with compliance. Having a system in place will help maximize productivity and efficiency.
Bottom line outsourcing payroll will only make life easier for you. By choosing to outsource this process, businesses can save time, and money, and get back to doing what they do best.
Contact us to learn more about how HireLevel can help you with your payroll!