The Benefits of Outsourcing Payroll Services in Chapel Hill

Over the years, outsourcing payroll services has become a strategic move for businesses like yours in Chapel Hill, North Carolina seeking to streamline operations and enhance efficiency. If you are considering outsourcing payroll, keep reading. In this blog, we will discuss the many benefits of outsourcing payroll services in North Carolina. Here’s a glance at what we will cover:

Cost savings

Access to expertise and advanced technology

Compliance issues and risk management

Improved data security

Enhanced employee satisfaction and more

Understanding Payroll Service Providers

Many employers like you in Chapel Hill, North Carolina outsource their payroll and HR needs to a third-party payroll provider. Payroll providers can help you handle all payroll-related tasks to include calculating wages, tax filing services, remaining compliant with ever-changing law updates, and managing direct deposits. They help by providing human capital solutions that allow you to effortlessly process your payroll in one place, ensure timely and accurate pay, compliance, and enhance the employee experience—every time.

Although outsourcing payroll services is common, there are several misconceptions, such as:

It’s only beneficial for large companies

It can result in a loss of control over payroll processes

It’s expensive

Truth is, you can benefit from outsourcing, regardless the size of your business. Payroll companies will provide you with a full range payroll preview that puts you in control of your payroll processing, alerting you to potential errors before you process. Outsourcing payroll will only make life easier for you. By choosing to outsource this process, you can save time, save money, and get back to doing what you do best.

The Benefits of Outsourced Payroll Services

Cost Savings

As a small to mid-sized business, handling your payroll in-house can be beneficial but, it could also cost you more than you expected. Running payroll internally involves a significant commitment of resources such as time, effort, expertise, salary, benefits, and much more. While it may seem doable at first, managing your company’s payroll can quickly become overwhelming, hurt productivity and prevent you from focusing on your company. Payroll providers can help you at a very reasonable price by paying your employees accurately and in a timely manner.

Time Efficiency

Payroll processing can be very time-consuming. According to a recent survey, it takes a single employee 1-2 full days of work to process payroll. When you eliminate manual processes, you can reduce the burden of administrative tasks and free up your time to focus on other high-priority tasks. When payroll is processed on time and accurately, it not only keeps your employees happy but also keeps your business compliant. You need to invest in a payroll solution that lets you seamlessly process your payroll in one place. Say goodbye to spending hours tracking your employees’ pay on spreadsheets and say hello to using a system that will automatically track your employees’ time and wages.

Access to Expertise and Advanced Technology

Payroll providers employ experts who have years of payroll experience. A reputable payroll company will require their payroll managers to hold either a Fundamental Payroll Certification (FPC) or Certified Payroll Professional (CPP) certification, which is valid for five years after certification. Most of them live and breathe payroll management, providing you with top-tier knowledge and skills that are hard to match in-house. The best payroll providers use cutting-edge technology that ensures efficient and accurate payroll for your employees. With access to payroll experts and a reliable system, you can rest assured knowing that your payroll needs are being met.

Compliance and Risk Management

Ensuring compliance with state and federal taxes is a critical aspect for any organization. Processing payroll requires strict adherence to numerous tax laws and regulations to avoid significant penalties. Failure to accurately calculate and withhold payroll taxes can result in hefty fines, including penalties for late payments, incorrect filings, and misclassified employees. These fines can accumulate quickly, impacting on your company’s financial health.

The IRS issues hundreds of new tax regulations annually, making compliance a complex and ongoing challenge for you as a business owner. Therefore, maintaining up-to-date knowledge of tax laws and ensuring precise payroll processing is crucial to avoid costly repercussions and maintain smooth operations. Additionally, non-compliance with federal, state, and local payroll laws can lead to audits and further legal consequences.

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. A good payroll provider will keep you in compliance with overtime wages, PTO accrual tracking and recordkeeping, workers’ compensation, unemployment taxes, social security, and more.

By outsourcing your payroll needs, you can ensure compliance and mitigate risk by staying up to date with the latest regulations. With a consultative and personalized service approach, they can help you by auditing your current process to identify compliance gaps and areas for improvement.

Improved Data Security

You must protect and store your employees’ sensitive data in a safe place. We all know that security breaches can happen at any moment, which is why outsourcing firms go the extra mile to protect their clients. Payroll service providers use encrypted channels and secure databases to ensure your data remains confidential and secure. By trusting payroll companies with your payroll needs you can gain peace of mind knowing they use a multi-layer security strategy and certified data centers to ensure compliance and protection.

Enhanced Employee Satisfaction

Happy employees are paid accurately and on time. Outsourcing ensures that your payroll never skips a beat as well as can provide management of employee benefits (such as PTO) and state and federal deductions. Statistics show that 67% of employees prefer to use an electronic self-service system. A self-service system can enhance employee satisfaction by providing access to their personal information, pay stubs, tax forms, and more. This fosters transparency and ensures data accuracy, leading to increased engagement and productivity.

Case Studies and Success Stories

Many small to mid-sized business owners in Chapel Hill prefer using payroll processing services. HireLevel currently assists over 500 small to mid-sized businesses in the Chapel Hill area with their payroll. Hear from one of our clients below:

“HireLevel is more than just a payroll service company. They offer tax services, HR services, timekeeping, and much more. I am no longer ever worried about compliance. I highly recommend the HireLevel team for all your payroll and HR needs.” – Local Restaurant Owner

Hear from another happy payroll customer:

Here’s How HireLevel Can Help With Your Payroll Needs

In conclusion, some of the biggest benefits of outsourcing payroll include:

Cut payroll costs
Decrease processing timeline
Maintain regulatory compliance
Ensure timely and accurate pay for your employees
Grow and streamline operations

We encourage you to consider outsourcing your payroll processing. This professional service will equip your business with the right tools and expertise needed to manage payroll efficiently and help your business succeed.

Schedule a meeting with HireLevel today to discuss your payroll and HR needs.