3 Reasons Why You Should Outsource Payroll

It can be quite daunting to tackle payroll administration in-house, and equally daunting when choosing a company to work with to fill your payroll needs, should you choose to outsource them. It can be nerve wracking to place this important function in the hands of someone else, but the perks of doing so can outweigh your fears.

1. Time Is Money
Payroll administration can be a huge investment of time if done correctly. There’s a wide range of laws and regulations to adhere to, and it can be time consuming to do so. Between taxes, wage and hour laws, local and state regulations involving unemployment and workers compensation, and the paperwork associated with these things, it can be overwhelming to try and accomplish it all effectively. This is why many businesses, of all different sizes, choose to outsource their payroll administration needs.

2. More Cost Efficient
Outsourcing a service may not seem like it will save you money, but payroll administration is one area where it can really payoff, as slip ups in this realm can be quite costly. The IRS has reported that one-third of all employers have been charged fees and interest due to mistakes made on payroll. This can add up to a huge chunk of money that would be better off used as an investment in your company. Not to mention the frustration and negative consequences your employees could face if their paychecks are not delivered correctly and on time.

3. Expertise You May Not Have In-House
Whoever you choose to outsource your payroll services to, it’s likely that they’ll have much more industry specific knowledge and experience than your in-house payroll administrator. By outsourcing payroll, you’re assigning this responsibility to someone who’s only job is to complete your payroll needs. Whereas, when done in-house, your payroll administrator typically has other duties and responsibilities to attend to as well.This split focus can be stressful for your payroll administrator and increase the likelihood of mistakes being made.

Whatever your reasons for outsourcing payroll administration, doing so can relieve some of the pressure internally while providing the peace of mind and security that comes from trusting this procedure to the experts. Flagler Financial can help you create a plan that suits your payroll needs. Whether that means taking over a portion of your payroll administration, or the entire operation. Contact us to learn more about how we can help!