Small business owners benefit from outsourcing payroll. While many choose to do payroll internally through the use of bookkeeping, an increasing amount of businesses are starting to prefer professional payroll providers. The fact of the matter is, many small businesses do not have the necessary experience and expertise to handle all the demands that payroll processing requires, and this time could be better spent on other matters that the business needs to take care of.
Managing payroll is more than just writing checks and making sure employees receive them on time. Keeping accurate records, calculating and paying payroll tax, and communicating with employees are all tasks that are also expected of the employee who handles the payroll of any business, no matter how large or small. This process can be simplified by outsourcing payroll, which will help to make things more efficient and cost-effective. Outsourcing the payroll process offers small businesses a number of benefits:
Saving Time
Processing payroll can be very time-consuming, regardless of the number of employees working in a business. Being extremely attentive to all the small details while at the same time inputting large amounts of data between pay periods could be time spent better elsewhere. By outsourcing payroll, time is immediately freed up to bring in more clients, enhance business operations, improve customer service, and even have more time to spend with family.
Cost-Effective
How many people are involved in the payroll process? If more than a single employee is involved, a business may be spending too much. Oftentimes, more than one employee spends time coordinating with others on the various parts of the payroll process, from calculating payroll and printing, signing and distributing checks to generating in-house reports and preparing payroll taxes. With a thorough cost assessment, it usually proves that outsourcing the job will pay for itself in the long run.
Peace of Mind
On average, one in three businesses owes more than $800 a year in tax penalties. This is due to many small businesses’ lack of knowledge in government tax regulations. If the employee handling the federal, state, and local employment tax paperwork does this the wrong way, the business is going to have to face penalties and pay back any interest that may be owed. There is also the chance that the employee handling the entire payroll process may find another job and take their knowledge and expertise away with them, leaving the company to scramble to find a replacement. Businesses can do away with these risks and hassles by outsourcing payroll.
At Padgett Payroll Services®, let us alleviate the pain of payroll. Save time and money by contacting us today and have the comfort of knowing our expertise is taking care of your payroll needs.