Should You Outsource Payroll?
When it comes to running a business, nothing is more important than your time and your money. Payroll can be a huge headache for businesses of all sizes, often requiring salaried employees to learn specialized software that they don’t fully understand. Outsourcing your payroll can make paying your employees a simpler and more inexpensive process, and give you the peace of mind that your business is complying with all legal requirements along the way. If you are trying to decide whether to outsource your payroll or hire someone to do it in-house, here are a few ways you will be better off leaving it in the hands of experts.
Outsourced Payroll Saves Your Company Money
According to the National Small Business Association (NSBA) 2013 Small Business Taxation Survey, 40% of surveyed small businesses outsource their payroll, while 60% do it in-house. Of those 60%, one in three are spending more than $6,000 annually on payroll. As the majority of small businesses have less than 9 employees, you can imagine how quickly the numbers would add up for companies who employ hundreds or thousands of people. Outsourcing your payroll cuts down on administrative costs and frees up your employees for the jobs they were hired to do.
Outsourced Payroll Keeps Your Company Compliant
A lot of businesses don’t consider the legal ramifications they can incur if they fail to follow all local, state and federal regulations as well as comply with current tax rates and filing procedures. Unfortunately, the fines and penalties can be steep and jeopardize your business if not followed properly. According to Inc., one out of every three businesses gets penalized by the IRS due to payroll errors. A payroll company will know the in’s and out’s of the payroll process, including legal requirements, as they are trained specifically to deal with payroll issues and have experience working with businesses of all sizes. If there are any errors on the part of the outsourced company, a contract is typically in place to cover any financial responsibility.
Outsourced Payroll is More Efficient
The average small business spends approximately 6 hours a month on payroll, which may not seem significant. Over a year, however, this would add up to 72 hours of work, which is almost two full weeks of pay. For larger businesses the manpower required to handle payments, deductions, tax rates, 401(k), mutual funds, benefits, and garnishments increases exponentially. Outsourcing your payroll is quick and extremely efficient. A dedicated payroll company can set automatic payments, take care of all administrative work, and most importantly give you back your most important resource – time.
Time, money, efficiency, and compliance – the advantages of outsourcing your payroll are many, but finding the right service provider can be a challenge in itself. SourceOne Partners has over fifty years of combined experience in the industry and multiple relationships with payroll companies. Partner with us and we can help you find the perfect solution for your business. Call us at 561-674-0748 or contact us online and begin the process with a free payroll review for your small business today.