Have you debated the pros and cons of outsourcing your business’s payroll functions?
It’s an important decision, as paying your employees accurately, staying legally compliant, and avoiding potentially costly fines for any shortfalls, can weigh heavily on your mind. Are these responsibilities best handled in-house or by an outside business partner?
What it often comes down to is: If you lack the specialized expertise or administrative resources to manage the myriad aspects of payroll management effectively, then outsourcing is probably the right choice. To save related headaches, 87 percent of all business owners have chosen outsourcing as part of their successful business strategies.
A Closer Look at the Benefits of Outsourcing
An increasing number of businesses are opting to outsource payroll because it helps them:
- Save time: With payroll duties off your plate, you have more time to focus on core business competencies such as product development, customer service, and sales, not to mention peace of mind, as you have more hours to devote to work/life balance.
- Minimize errors: Tax laws can be complicated, to say the least. Outsourcing ensures that those handling your payroll are well-trained, up-to-date, and qualified to handle all the tax aspects – as well as minimize any other processing errors.
- Improve security: Many businesses don’t have the resources to properly encrypt and store sensitive data, such as employee bank account information. A good outsource provider has state-of-the-art security measures in place to provide watertight protection.
- Maintain compliance: Payroll providers also stay on top of ever-changing government mandates, so you don’t have to. And they can take the lead in filing all paperwork necessary for 100 percent compliance.
- Integrate data: Your outsourcing partner can help you fully integrate payroll with time and attendance, benefits and other HR applications to secure data accuracy. This also makes it easier to access information through a single sign-on.
- Provide direct deposit and employee self-service: In addition to offering the needed resources to set up direct deposit, when working with your outsourcer, you can enable your employees to view their pay information, log their hours, and manage their withholdings, all from their own mobile devices.
- Eliminate software concerns: Your outsource partner will provide the needed software programs used in payroll administration and keep them regularly maintained and updated.
- Full team support: If yours is a small business, you may have a single employee or two responsible for payroll. If they become ill or have to take unexpected leave, this can pose a big problem. Using an outsource provider, you won’t have to worry about this scenario.
And the bottom line to all these advantages is the positive impact on your bottom line, as you save precious time and resources and eliminate costly errors. It quickly becomes a win-win.
Learn More About the Benefits of Outsourcing Payroll
Key HR can save you 20 to 40 percent in expenses as we provide the best payroll management solution for your company. Even if you’re still on the fence about outsourcing, we can help point you in the right direction for your business.
- Posted by admin
- On September 6, 2023
- 0 Comment