Should Small Businesses Outsource Payroll
It is commonplace to see small business owners tackling a lot of issues that demand equal attention, and at the same time. Coming up with strategies to boost business sales and productivity, prepping your staff, and taking charge of your finances—especially managing your payroll—can be exhausting.
That’s why businesses are now leaving this task to professional payroll providers. If you’re wondering whether it’s a wise business decision for your small business to outsource payroll, the answer is a resounding yes.
In this article, we will discuss what payroll providers are and the benefits of outsourcing one for your small business.
Who are Payroll Providers?
Payroll providers are expert agencies hired by businesses to handle their payroll processing in a professional and hitch-free manner. It is very vital, even as a small business owner, to outsource payroll.
Benefits of Outsourcing Payroll.
Outsourcing your payroll to payroll providers come with many benefits. Some of them include:
Time is money, even for small businesses. And when it comes to payroll, it is a time-draining exercise. Having to calculate a worker’s allowances and taxes, deductions, overtime, paid time, and ensuring that state and federal regulations are strictly adhered to can be really stressful.
However, when you outsourcing payroll to an expert provider, like Consultants In-A-Box, you as a small business owner will have more time to focus on other strategic tasks that will boost your bottom line. Also, this will also aid the employee in your accounting department to channel their energy to another productive venture for your business.
The staff size of your business doesn’t matter. When you think about the time you’d spend in preparing W2s, the importance of outsourcing it to payroll providers becomes crucial.
When it comes to payroll processing, mistakes may arise, especially when it is done in-house. Payroll mistakes impact your workers and your business. The IRS also frown frowns at payroll mistakes and would not waste time issuing penalties to you.
As a business owner, you’re responsible for whatever happens, good or bad. And that’s why it’s important to contact your payroll to experts who are equipped with the knowledge of federal and state regulations and the changes in tax rates. More so, you need a payroll provider that will be able to implement these figures in your payroll effectively.
Team of experts
Because new tax laws and regulations are made almost every year at the state or federal levels, your business must continue to ensure that it is on the side of the law. This is why you should outsource payroll.
Payroll providers are experts in the business of accounting and HR. These experts are well aware of the ever-evolving intricacies of payroll, and you can always count on them.
Eliminates payroll fraud
Currently, payroll fraud affects 27% of businesses worldwide. It is reported that businesses with less than 100 employees are more likely to be affected. Even if you trust your workers, there’s a potential risk of being defrauded from identity fraud, embezzlements of funds, ghost employees, illegal filling of timesheets, and many more.
You may not have the time to properly and closely monitor your workers in the accounting department. But you can invest in a more sustainable solution: hiring payroll providers.
When you think about processing payroll in-house, you’d have to factor in a lot of things. Some of them include calculating payroll, printing, disbursing paychecks, keeping up with tax laws, generating reports, etc. This often results in spending more money than you bargain for.
When you compare it with payroll outsourcing costs, you’d see that it is more cost-effective to hire a payroll provider.
Consultants In-A-Box is a leading payroll provider, tasked with delivering the best payroll solutions for small and large businesses. You’re just a click away from transforming the financial aspects of your business. Reach out to us today.
- Jordan VanMaanen