You’re not alone if you think trying to DIY your payroll will save you money. But research shows it’s just not true.
But there’s a solution. Outsourcing your payroll will not only save you money and time but prevent security breaches and other risks.
Read on for our guide on the benefits of outsourcing payroll.
1. Outsourcing Payroll Increases Security
Human error is one of the highest causes of data leaks. One of the risks of trying to prepare your own payroll is a data leak or hack which could cause serious financial problems for you and your employees.
Payroll agencies use high tech security systems and networks to ensure that you and your employee’s information is totally secure at all times.
2. Tax Expertise
The laws surrounding payroll and taxes are complicated and diverse. And the opportunities for human error are great.
One of the risks of preparing your own payroll documents is non-compliance issues, fees, and lawsuits.
Outsourcing your payroll means that someone who is well versed and highly experienced does the heavy lifting for you.
They know the ins and outs and will help prevent risk and save you money.
3. Focus on Your Core Business
If you’re not a payroll and tax expert then you shouldn’t be preparing payroll and tax documents.
The amount of time it will take you to learn how to do both will usurp time from your core business and goals.
4. You Have Options
Not all payroll agencies are alike. They’ll have different costs, different benefits, and different levels of ease.
Most agencies will charge based on the number of employees, but some have additional services and additional costs.
It’s also important to pay attention to each agencies’ ability to provide good customer service to you. How long does it take for you to reach a live, helpful, informed person?
Do some research on a few different options and make the choice that seems right for you!
5. Save Time and Money
Not sure that outsourcing payroll is in the budget? You’re not alone because most people assume that doing payroll in-house will save them money. But it’s just not true.
Many make the mistake of assuming that payroll isn’t a full-time job and is something they can do on top of other responsibilities.
Two people apply for one job. They both expect the same salary and benefits, but one has 10+years of experience, is certified, and fast. The other applicant is hard working and willing to learn but has no experience and will need on the job training. Which one do you hire?
The obvious answer is to choose the person with experience who can quickly and professionally perform the job at hand.
In order to run in-house payroll you’ll also need to consider these costs:
- Installation, maintenance, regular upgrading, and repair of the timekeeping system
- Salary (including benefits) of the employee who will prepare and distribute payroll checks
- Cost of correcting errors (human or tech) which can include additional labor, lawsuits, or non-compliance penalties
Overall, research shows that outsourcing payroll costs 27% less than doing it in-house.
Now that you know the benefits of outsourcing payroll it’s time to contact your payroll professionals today!
Outsourcing payroll will cost 27% less on average than trying to do it yourself. Stick the professionals to save time, money, and prevent risk.