Outsourcing Human Resources: Why Payroll Administration is A Great Place To Start

If you’re like many small business owners, every time you look in the mirror you see not only the owner, but also the warehouse manager, head of human resources, the recruiter, marketing department, and head of customer relations. The truth is, there is no end to the responsibilities of a business owner.

Many owners find themselves overwhelmed or, at least, heavily burdened by the amount of work required to run a successful business. Many of them outsource some of their human resources tasks, and payroll administration is one area where they seek relief.

Human Resources Can’t Do It All
Payroll administration is one of the more complex and demanding tasks of any human resources division. Payroll is subject to a wide variety of influences, including:

• Ever-changing tax laws at local, state, and federal levels. Often, these changes are announced in small circulars, not to the general public.
• Changes in accepted accounting practices and software, these changes can help you have a clearer picture of your financial situation.
• Payroll administration deals with many calculations including deductions, exclusions, taxes, and other data. It requires an exceptional level of attention to detail at all times. Many business owners or human resources departments find it difficult to give payroll the attention it deserves.
• All of these requirements need time from an owner. Time to learn and keep up with changing rules and time to pay your employees. And, as you know, in a small business, time is a precious commodity.

Here’s a Way to Solve the Problem and Free Yourself From the Burden
Outsourcing your payroll administration is one of the best steps you can take to ensure your employees are appropriately compensated, and your company stays in compliance with the law.

By outsourcing your payroll administration you’re relieving yourself of a burden and freeing up a substantial amount of time. Additionally, you’ll be secure knowing your company is:

• In compliance with all payroll and taxation laws
• Employees are properly paid, their deductions are correct, and all taxes are paid. This includes the right deductions to retirement plans, benefits, or special deductions for court-ordered payments.
• Payroll records, documents that are important to many of your business partners, are accurate and complete.
• The company handling your payroll administration will be in direct contact with your other departments, sharing knowledge and information on a real-time basis.
• You will be alleviating your human resources department, or yourself, of a huge task.

And, most importantly, you’ll be giving yourself time. The one commodity you can’t purchase. The other thing to remember is that even if you feel you don’t need a payroll administrator right now, your business will grow. As you expand, you’ll undoubtedly add new employees and expand your payroll and tax liability. Payroll administration will help you stay on top of the growth, so there aren’t any missteps during changed in your company’s evolution.

At Flagler Financial we understand small businesses because we are a small business. We offer a level of connection that isn’t possible from large corporations. As a premier financial services company in Central Florida, we help a wide variety of businesses with their insurance, payroll administration, and financial needs.

If you would like to discuss how we can help your company grow, we encourage you to contact us for a consultation.