{"id":2126,"date":"2017-07-26T10:17:25","date_gmt":"2017-07-26T14:17:25","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=2126"},"modified":"2026-01-26T07:55:12","modified_gmt":"2026-01-26T12:55:12","slug":"what-signs-do-i-look-for-know-when-its-time-to-outsource-payroll","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/what-signs-do-i-look-for-know-when-its-time-to-outsource-payroll\/","title":{"rendered":"When is it time to outsource payroll?"},"content":{"rendered":"
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\n\t\t\t\t\t\tWhen is it time to outsource payroll?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tAndrew Dourgarian<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n

Knowing when to make critical business decisions can be as easy as looking for a freeway on-ramp sign.  However, if you don\u2019t know what to look for, a great opportunity can pass right by. When it comes to deciding if it is the right time to outsource your payroll<\/a>, here are three signs it is time to find a new partner.<\/p>\n\n\n\n

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  1. Time:<\/strong> What\u2019s the old saying? Time is money? That saying could not be truer when it comes to managing payroll.\u00a0 27% of small businesses spend more than six hours per month just dealing with payroll taxes. Some business owners reported spending more than 10 hours a month on payroll taxes.\u00a0 10 hours per month is a lot of time spent just calculating, filing and sending in payroll tax forms to various agencies. Break out your stopwatch, how much does it cost your business a month to process payroll internally?<\/li>\n\n\n\n
  2. Fines: <\/strong>There is a 32-page IRS document<\/a> that details out how and how often to file your federal tax deposits if you\u2019re doing your payroll in-house, you probably have it saved as one of your favorites (if you don\u2019t, you should). Fees and fines will start to add up quickly if you don\u2019t follow all the rules.\u00a0 Doing your payroll means that the liability falls on you to do it correctly.\u00a0 One or two penalties will start to add up. Unfortunately, this sign is more like a speeding ticket \u2013 but if you get one, it\u2019s time to evaluate the real cost of doing payroll in-house compared to outsourcing it.<\/li>\n\n\n\n
  3. Employee turnover:<\/strong> Your staff is your most valuable resource and the cost to replace an employee rather than retaining them can be astronomical. To find out the true cost of employee turnover\u00a0click here<\/a>.\u00a0 There are many reasons why an employee may move on, but if they are leaving because they wanted direct deposit<\/a> or the ability to see their payroll information online<\/a> or because you\u2019ve messed up their paycheck several times, it\u2019s time to make a change to your payroll solution. Would you want to work for a company that didn\u2019t have their payroll in order?<\/li>\n<\/ol>\n\n\n\n

    There is a big misconception among small business owners that doing payroll<\/a> on your own will save you time and money vs outsourcing it to a payroll company or service bureau. The reality is the time to do it yourself has a price tag but doing it wrong has an even greater cost. Look for the signs and know when it\u2019s time to find a trusted partner to handle your payroll. Finding the right payroll partner will allow you to do what you do best, grow your business.<\/p>\n\n\n

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