Here are ten good reasons why you should consider outsourcing payroll management to a professional organization:
1. You Save Valuable Time
The most obvious reason to have someone else handle your business’ payroll administration is that it saves you valuable time, freeing you up to do other things.
Taking care of payroll is a job all in itself – why not let it be someone else’s job? Dealing with deductions, taxes, hours and wages, holiday pay, hiring/firing as related to payroll, wage garnishment, and more means it’s too complex to do quickly. It takes many hours out of your day (or days!) that you could be devoting to business management and growth strategies.
2. Say Goodbye to Processing Errors!
It’s all too easy to make a mistake as you wade through the tedious task of “doing payroll” every week, two weeks, or month.
But companies that specialize in payroll administration can’t afford to be anything less than virtually perfect. They are absolutely meticulous and utilize advanced software systems that would be too expensive to buy and constantly update yourself.
These systems almost entirely eliminate processing errors – which makes for happier employees and paydays that are stress-free for employers.
3. Stay Compliant & Avoid Penalties
A third reason why so many businesses utilize professional payroll administration services is that it helps to avoid the hefty and embarrassing penalties that can apply when payroll is not handled in a “compliant” manner.
Tax, withholding, wage garnishment, or discrimination issues can pop up at very unexpected turns to those unfamiliar with the details of payroll law. And those laws are always in flux – only devoted payroll admin talent has the time and resources to constantly keep up to date on it.
4. Payroll Administration Can Save You Money
Typically, you can save a good deal of money when you outsource payroll admin. First off, you no longer have to pay someone to do it in-house or do it yourself when you could be doing other things.
Skipping potential penalties adds savings too, as does avoiding possible liability issues. You will no longer need to periodically train and retrain employees to do the job. Your business will be leaner and more efficient.
5. You Will Never Be Caught In A Bind
Once you are dependent on in-house staffing to handle payroll, the pressure can mount drastically in certain less than ideal situations.
Let’s say your payroll expert is sick, out of town, or just decides to quit on you? What then? You may not have anyone else on hand who can pick up the task and complete it like the one who usually handles it. Then you are left in a major bind, scrambling to get through payroll without being late and without making a lot of mistakes.
When a third party does your payroll administration, there is no risk of any of that ever happening. It’s as simple as that. You can relax and have some real “peace of mind.”
6. Greater Data Security
Storing all your payroll data in-house can be a dangerous course of action. It would be all too easy for information to get lost, destroyed, or stolen. Some unscrupulous employee might be tempted to commit fraud or embezzlement while having access to the data to do it with.
Payroll admin experts can be trusted to protect your valuable payroll data. They have no motive for doing anything amiss with it anyway likes some in-house might have.
Plus, they also use top-tier anti-virus and anti-hacking software to protect your data. And you won’t lose payroll data due to a local storm, natural disaster, public disorder, or power outage either
7. You Can Save Paper
Most payroll administration companies offer paperless checks that automatically deposit to workers’ bank accounts once they set things up. This can reduce paper use in your business’ office, to say nothing of ink and printing equipment.
If you want to “save a tree,” one way to do it is by outsourcing your payroll administration!
8. Your HR Department Will Thank You
A huge portion of questions that human resources staff have to field concern payouts and other payroll-related issues.
Imagine if they didn’t have to deal with that anymore since employees could look up their information online and get all the answers they need there instead. Your HR staff could focus on other things, like human relations and employee satisfaction.
9. You Get Valuable Reports
Most payroll administration providers will also give you some valuable data and end-of-month reports (and the like) that become key reference points in business growth planning.
This kind of conveniently available data will make it easier to visualize exactly where your business is at the moment so you can make more informed business decisions.
10. You Will De-stress Your Life
Payroll-induced stress is a major factor in the lives of many business owners. Imagine if that source of repeated stress suddenly vanished and you never had to deal with it again.
For that reason alone, many SME (small to medium-sized enterprise) owners are choosing to outsource payroll. But, as we have seen, there are at least 9 other good reasons to do so as well!
To learn more about how professional payroll administration works, contact the payroll experts at Flagler Financial today! We will give you a free, no-obligation consultation and quote and can get started on managing your business’ payroll as soon as you decide it’s time.
