You’ve hired the best and brightest employees, you’ve trained your salespeople, and you advertise in all the right markets. Focusing on these functions brings in revenue by attracting new customers and retaining current clients. There are other aspects of your business that don’t generate income for you, but nonetheless, are important. One of these non-core functions is payroll processing. You’ll realize three specific benefits by letting someone else handle this task for you.
Compliance With Laws
Chances are, you’re not well-versed on every tax, employment, and withholding law on the books at the local, state, and federal levels. However, that does not excuse you from following them. Make a mistake in any of these areas, and you could end up paying a substantial amount in penalties and fines. When you hire an experienced payroll service, they take on all of the responsibilities that payroll entails. In addition, they will maintain accurate records, file the appropriate forms, and remit the taxes due in a timely manner.
Maintaining an internal payroll department may seem like a good idea, but it could be costing you more than you think. Consider the fact that you must pay the salaries of the payroll department, maintain office spaces, and buy supplies and equipment. In addition, the average company spends about four percent more on payroll than they need to because of inaccurate record keeping of employees’ time and attendance. Finally, 40 percent of businesses pay around $850 in fines and penalties for late or incorrect tax filings each year.
Access To Technology
You may have gotten by with using off-the-shelf business accounting software when you started your business. However, as your company grows, you’ll hire more employees, which means you’ll increase the number of records that need to be maintained. Lack of technology in this vital area can hinder your company’s growth. In addition, employees expect things like direct deposit and instant access to their payroll information. If your company cannot provide these, you’ll be at a disadvantage compared to a competitor that can.
As you can see, outsourcing payroll services is beneficial to your business. If you’re still doing your own payroll, contact us for a free consultation. We will assess your situation and tailor a payroll plan that addresses your needs.