Small business owners find it advantageous to outsource certain functions rather than continue to manage them within the company structure. One of the more common tasks that can be outsourced is payroll management. Choosing to work with a local payroll provider can accomplish quite a bit. Here are a few examples of the benefits your company can enjoy.
Savings on Employee Related Expenses
One of the immediate benefits is that you need fewer employees for bookkeeping purposes. Rather than two or more people who primarily focus on payroll related tasks, it’s possible to have one person who interacts with the outsource team.
Even allowing for the fees paid to the partner, you still stand to come out ahead. Working with a payroll service means fewer employees who need wages, salaries, retirement fund contributions, insurance, and all the other benefits that you extend to those who work for you.
Making Sure the Taxes Are Paid on Time
A payroll service focuses on everything that has to do with the payroll. That includes calculating the taxes that need to be withheld and making sure those amounts are forwarded to the correct tax agencies. You don’t have to be concerned about whether the company’s and the employee taxes are being remitted on time. The outsource partner is making sure everything is done in accordance with current requirements.
How does that help you? There are no worries about penalties and other fees related to late payments. Think of it as one way to avoid creating additional expenses that don’t benefit the business or your employees.
Payroll Isn’t Delayed Due to Illness
If the payroll is still processed in-house, what happens if your payroll team is ill and out for a few days? Who will step in and make sure everyone is paid? Will that second string be able to get the payroll done so everyone is paid on time?
None of these questions matter if you’ve outsourced the payroll. There’s already a team in place to step in and complete the job if some of the people who normally process the payroll are not available for any reason. In fact, you won’t know the difference because the direct deposits and the paper checks show up on or before payday.
Up to Date on the Latest Tax Laws
Laws related to employee and employer taxes do change from time to time. Keeping up with changes and identifying how they apply can be a full-time job. That can put additional stress on the staff in a smaller business. The result is something that can be overlooked until it’s too late.
By outsourcing to a local payroll provider, this is not something you have to face. Your partner stays on top of any local, state, and federal changes that impact how withholding is done, due dates for payments, changes to the forms that need to be submitted, and anything else related to this function. All you have to do is continue submitting the raw data related to the gross pay of each employee and let the partner take it from there.
There are more benefits to outsourcing the payroll to a trusted partner. Talk with a local service today and learn about them. You may find that this is a great way to maximize your company resources while still keeping your promise to pay employees on time.
