As a business owner, you wear a lot of hats. You have to deal with the daily demands of clients, employees, and your company as a whole. You also have to address the big picture, long-term goals, and growth.
One of the many ways you can deal with the demands on your time is to delegate where you can. Payroll is one of the areas that should be delegated—often to someone who has more experience and knowledge about taxes, accounting, voluntary deductions, compliance, and a lot more.
A third-party payroll service can be a huge benefit to your company because they will deal with these more complicated issues so you can focus on other aspects of your business. Some of the critical benefits of using a payroll service and why you should invest in payroll outsourcing services are set out below.
Tracking and processing payroll is time-consuming. The more time the company owners or managers have to take to do payroll, the less time they have to use their time and effort elsewhere.
Instead, your time is better spent on why you started the business in the first place—to provide a product or service. Most business owners have very little experience with accounting and payroll, and their time will be much more valuable actually doing the work to keep their customers happy.
Having a third-party payroll service process your payroll for you saves you lots of time. You simply hand off the necessary documents, and an expert will handle payroll for you.
Meet Legal Compliance Requirements
In most cases, business owners have to teach themselves the ins and outs of payroll processing. Learning what you need to do to run payroll accurately also takes a significant time commitment that many business owners simply do not have. The result, unfortunately, is that they often miss necessary actions that they must take to comply with tax and legal requirements.
Legal compliance, including appropriate tracking and reporting for tax purposes, is vital. If business owners skip these steps, they may be fined or might even be subject to a lawsuit.
Payroll services do this type of work day-in and day-out. They will be able to help you ensure that you are compliant with state and federal laws when it comes to taxes, payroll deductions, and a lot more. You do not have to teach yourself an entirely new profession to process payroll!
Some companies will deal with any errors for you while others take one step further and has a No Penalty Guarantee to address penalties and interest incurred if they make a mistake.
Increase Security and Convenience
When you process payroll yourself, you likely do not have a good way to get information to your employees in an easy-to-access and secure manner. Using direct deposit and having secure online access is much more convenient for your workforce, and it helps keep employee information private.
Some payroll services include secure online access options for your employees. Employees can view their pay stubs, tax filings, and more. Using this platform not only allows employees to get the information they need when they need it, but they can do so without asking you to get involved.
Employees today expect this kind of data access, and if your business does not have these basic services, you can be at a disadvantage compared to other employers.
While you might think that having to pay a third party is a disadvantage of outsourcing payroll services, it can actually be a benefit when you compare it to the cost of processing payroll yourself.
First, you have to take time away from your regular work to process payroll if you are doing it yourself. You also may need to invest in computer equipment or software, which needs to be updated periodically. Employers also need to stay up to date with payroll requirements and accounting deadlines, which can be a challenge. You might even feel like you need to hire a payroll employee, who might work on a part-time or even full-time basis.
When you look at the cost of having to do the payroll yourself or hiring an employee to do it, using a third party is often the less expensive, more efficient way to process payroll.
Learn More About Payroll Services
If you are ready to learn more about how payroll services can help your business, contact America’s Preferred Payroll Services.