Businesses have never before been under the financial strain we are seeing in today’s marketplace. The common refrain seems to be to down-size and out-source to save money.
While these practices can and do work, many small to medium-sized business owners either believe this practice won’t save them enough money to make it worthwhile. The truth is, out-sourcing is an extremely effective way for small and medium-sized businesses to save money, especially in the outsourced payroll department.
Here, we will detail five reasons outsourced payroll can and will save your business money.
1. Outsourced Payroll Saves You Money
When a business owner is asked why they don’t outsource their payroll their first answer is always money. The argument they make is that the service is more than the cost to handle it in house, but this isn’t true.
Almost always, when you outsource your payroll you save money. The cost to hire an employee to manage the process is more than just their wages. There are payroll taxes, benefits, and worker’s compensation insurance that must be paid on top of their wages.
2. 100% Compliant
In today’s business, you face ever-changing and evolving payroll and tax laws. If you keep payroll in-house you need to stay abreast of these changes. It isn’t easy to do and if you make a mistake it could cost you hundreds or even thousands in fines and fees.
A payroll company hired to handle your company’s payroll is staffed by industry professionals well versed in the laws surrounding payroll and taxes. It’s their business to stay on top of industry trends and regulations.
3. Improved Security
You may trust the person handling your payroll operation, but embezzlement statistics point to a rise in theft, accounting for 13,500 offenses in 2019.
Theft of any kind is only possible when the opportunity presents itself. Someone handling your business’ money presents an opportunity. By outsourcing your payroll you remove the opportunity or temptation for an employee to steal.
You probably don’t have the data security of a professional payroll firm either. Because their business is responsible for handling the sensitive financial data from multiple companies they have better data security.
Hackers might easily enter your system through your free Wi-Fi portal you offer to customers. Once inside it isn’t difficult for a skilled hacker to begin taking money and gathering sensitive information that could lead to identity theft and more.
4. Saves You Time
You may be one of the few companies that can honestly say they won’t save money outsourcing payroll. Even so, you will save time. Small business owners often wear many hats and if payroll is one that’s fine. But what could you do with 20 or so hours every week you commit to payroll?
Time is money and if you can spend your time making money instead of spending it on payroll processing.
5. Employees Love It
You might not think about it but your in-house payroll might not be ideal for your employees. Hiring a firm to handle your payroll processing comes with added benefits for your employees. Benefits like direct deposit and online portals to access pay stub information, make changes to their W-2s and healthcare selection are just a few.
Find a Payroll Company Today
If you’re ready for outsourced payroll processing with a quality company you should contact us today. Put our team of professionals to work for your company today, and get back to doing what you do best, running your company.