Payroll Outsourcing – Why You Should Consider This Move in 2022
August 2, 2022 / Category: Uncategorized
Keeping up with payroll is the bane of many small business owners’ existence. Let’s face it: as an entrepreneur, you already have an incredibly hectic schedule — and that’s without having to spend hours on tedious accounting tasks week after week! Still, payroll is a key component of your business, and it must be given due attention. So how can you find the balance between taking care of your payroll and focusing on your core business operations? This is where payroll outsourcing comes in.
Many business owners have found that outsourcing payroll is the best solution to this dilemma. Working with a third-party payroll company may be a perfect fit for your situation as well.
With that in mind, let’s review 6 important reasons why you should consider payroll outsourcing:
Reasons to Consider Payroll Outsourcing
Reason #1: You’ll reduce costs
How can you reduce costs when you pay professionals to do your payroll? For one thing, you’ll reduce costs by ensuring that payroll is done right the first time. If you’re inexperienced in handling payroll and try to do it yourself, it’s very likely that you’ll end up making costly mistakes — mistakes that a payroll expert would have avoided.
In addition, there’s truth to the old adage that time is money. The less time you have to spend on “maintenance activities” like payroll, the more time you can spend on revenue-generating activities, like sales and marketing. Granted, time savings may not be quite as easy to measure as money savings. However, they are even more valuable in the long run. This is especially true in the case of business owners that have to work under tight deadlines.
Reason #2: You’ll reduce stress
As a business owner, do you have to deal with stress? It’s a silly question to ask, isn’t it? From solopreneurs to corporate executives, everyone with a measure of responsibility in the business world has to deal with quite a bit of stress on a daily basis. After all, people look to you to make the final decision on all sorts of issues. These can range from minor matters to mission-critical inflection points.
With this great burden of responsibility resting on your shoulders, the last thing you need to worry about is whether payroll will check out at the end of the week. And if it doesn’t, it could lead to a domino effect of negative consequences. Put another way: when the checks start bouncing, so will your employees!
Clearly, there’s a major advantage to leaving your payroll in the hands of an experienced, reputable outsourcing partner. Instead of having another looming deadline on your weekly planner, you can breathe easier. You can start dealing with the other stressful situations that come with the territory of being a business leader.
Reason #3: You’ll attract and retain top talent
Job security may not be what it used to be. However, it’s still a prime concern for people in the modern workforce. Do you know what can make employees feel instantly insecure? Payroll errors. That’s right: inaccurate or late payments to employees are often a major red flag that they need to start looking for employment elsewhere. At the very least, it can be irritating and demoralizing for employees to spend their time asking HR to fix payroll errors — errors that should never have been made in the first place.
On the other hand, a reliable, conscientious payroll provider can contribute to your employees’ feeling of security. When workers are confident that they’ll receive their paychecks on time and in the right amount, they’ll be more likely to stay with your company for the long haul.
Reason #4: Payroll outsourcing can free up your HR team for other key tasks
In most companies that do in-house payroll processing, the task usually falls on either the human resources or finance department. However, payroll processing can be very time-consuming. It can actually detract from other important HR activities (e.g., recruiting, hiring, onboarding, compliance auditing, and so forth). When you consider payroll outsourcing, you are, in effect, freeing up your HR team to focus on these other areas.
Reason #5: You’ll have experts on your side
It’s always nice to have experienced payroll experts on your team — experts who know about the latest industry trends, the most effective new programs and platforms on the market, and of course the best practices in payroll management.
Working with an outsourced payroll provider can help you gain access to such expertise. Your payroll partner can make sure that all of your data is updated and accurate, and that your company is compliant with its documentation. Put another way: your payroll company may help you to avoid a needless audit.
Reason #6: You’ll have an easier time filing taxes
Businesses with a global footprint, and thousands of employees located around the world, obviously need all the help they can get when it comes to staying compliant with international tax codes. But even smaller, regionally-located companies can have issues with filing taxes. After all, understanding the dense tax laws of a single country, state, county, and city — not to mention staying up to date on any changes —can be a very difficult proposition.
Fortunately, payroll outsourcing helps you to sidestep that potential headache. Your payroll partner can assume the responsibility of complying with all applicable tax codes, properly classifying workers as employees or independent contractors, and filing taxes with the IRS on time. And really, isn’t any service that allows you to avoid dealing with tax law a good service?
As you can tell from the 6 points above, there are many compelling reasons to consider payroll outsourcing. And that’s not to mention other factors we didn’t get to highlight such as increased data security and reduced paperwork.
If you’re seriously thinking about payroll outsourcing and want to learn more, reach out to our team of friendly experts at Premier Payroll Solutions today. We proudly serve restaurants and other businesses throughout New York City. We would be happy to help you with all of your payroll needs!