Payroll is a hot topic among employers. It’s a necessary part of doing business, but there are a lot of headaches that come with it.
Outsourcing payroll is a viable
option, but it’s also an expense that you might not want to take on right now.
What you don’t realize is that the
benefits of outsourcing far outweigh the expense. Would you like to know more?
Read on to learn the top reasons to
outsource payroll and see for yourself.
1.
Payroll Is Correct
Payroll errors can get you in
trouble with the IRS, state tax authority, and employees.
It’s easy to get distracted when
you’re processing payroll. Someone can drop in and ask you a question in the
middle of a tax calculation.
You might be tired and make a typo. You’re
human and you’re prone to mistakes.
Outsource payroll and you’ll avoid
fines and tax penalties because of simple mistakes.
2.
Save Time
One of the main benefits of
outsourcing payroll is that you save time. Small business owners spend hours
each pay period on payroll alone.
What else can you do with that time?
You can do the things that matter to grow your business. Hiring payroll
services allows you to focus on your business.
3.
Tax and Labor Compliance
Do you know the laws that govern
payroll in the United States? The Fair Labor Standards Act, Federal
Unemployment Tax Act, and Federal Insurance Contributions Act are the main laws
at the federal level.
Each state has its own labor and tax
laws. That’s enough to make your head spin.
Payroll services don’t just make sure you avoid penalties because of payroll
errors. They ensure your payroll taxes get paid on time and comply with all
labor and tax laws.
4.
Enhanced Security
Employers still use timecards and
spreadsheets to calculate payroll. The most sensitive employee data is out
there for anyone to see.
Work with payroll services because
they use enhanced security standards to keep everyone’s data safe and secure.
5.
Employee Satisfaction
Employee retention is a hot topic
for employers. Workers are looking for more freedom, pay, and a better quality
of life.
Your payroll mistakes can cause
employees to leave your business.
About 25% of employees experienced
payroll errors. These can get fixed quickly, but when most people live paycheck
to paycheck, that can have serious consequences for your business.
Almost half of those employees
search for a new job after they experience a payroll error. Don’t give
employees an excuse to leave.
Employees also have greater control
over their data with payroll services. They can access W-2s and payroll stubs
anytime they want.
It’s
Time to Outsource Payroll
If you weigh the costs and benefits
of outsourcing payroll, the benefits certainly outweigh the
costs. Outsource payroll and you’ll save time.
You’ll minimize costly mistakes and
improve employee retention. It’s also worth it to stay within compliance.
Do you want more tips to show you how to grow your business? Head over to the Business section of the blog today!
