We are huge supporters of outsourcing payroll for our clients. Even our bookkeeping service outsources our own payroll. Why? There are a lot of reasons that any business should consider outsourcing their payroll and here are some of the major reasons:
There are some major liabilities that come along with running payroll. Staying in compliance with the federal government, local government, workforce services etc just to name a few. Payroll law and taxes are constantly changing. Most mistakes I have seen with payroll are with the withholding and payment of payroll taxes. If any of the payments are missed or incorrect they come along with huge penalties and interest. Have you ever got a scary notice from the IRS regarding a payroll withholding? Imagine the peace of mind you would have if you could just fax it off to your payroll representative and forget about it. It is worth the small fee that payroll companies charge
2. Opportunity Cost
The time it takes to manage payroll for a business depends upon the complexity of the payroll and also the number of employees. It could take just a few hours a month, but typically takes much longer than that. However, have you ever seen the cost of outsourcing payroll? It is cheap and competitive. Imagine all the other things you could be doing with your time that would make for a more profitable bottom line.
3. Use a professional
Outsourced payroll companies specialize in running payroll. They know what they are doing and keep up with the constant changes that occur in the industry. Much like a specialist doctor sometimes you need to see someone else besides your general doctor to solve a specific problem.
4. It makes sense financially
Like I said previously in this article payroll companies are competitive and cheap. So we focus more on customer service and efficiency when considering a payroll company to outsource to. We cannot compete with the prices payroll companies are able to provide. That is why we always recommend that you outsource your payroll; it is cheaper and your company faces less liability.
There are many factors to consider when outsourcing your payroll, not just cost. If you are interested in exploring outsourced payroll options please feel free to email me to discuss the details of your business.