There comes a point in the life of many small businesses when payroll processing causes real pain—even with an in-house employee to handle it. This is when outsourcing payroll may make sense. Consider the benefits of outsourcing payroll below so you can make an informed decision and relieve your payroll pain once and for all!
More free time
Manual payroll processing is time-consuming. That’s why many small businesses opt to outsource payroll. This frees up staff time and allows you to focus on more strategic, revenue-generating activates.
The direct costs of payroll processing can be significantly reduced by outsourcing it to a small business with 10 employees will spend an average of $2,600 per year in direct costs associated with payroll.
Avoid IRS penalties
Late or incorrect payroll tax filings and payments can add up quickly. When you outsource payroll, you can eliminate these fees because the provider typically takes responsibility for paying any incurred penalties.
Tame technology troubles
When you handle payroll in-house, there’s the burden of not only payroll processing but also software costs and maintenance. You also have to make sure that you are using the most up-to-date tax tables. Using incorrect tax tables may lead to stiff penalties. Outsourcing payroll removes technology woes and the risk of penalties.
Benefit from payroll expertise
Payroll regulations, withholding rates and forms are constantly changing, which may be hard for your in-house payroll person to manage. When you outsource payroll, you can take advantage of payroll experts who focus solely on keeping your company in compliance and current regulations.
Rise above employee turnover
When your payroll is handled in-house, if employees decide to leave, they take all of their payroll processing knowledge with them. Using an outside payroll service reduces your business risk and ensures redundancy in your payroll process.
If payroll is causing your business unnecessary pain from situations such as those detailed above, now is the time to take action. Look into outsourcing your payroll with a dedicated provider before year end rolls back around.