One of the hot topics in the payroll industry right now is if outsourcing payroll operations is right for businesses. Preparing payroll can be tedious, time-consuming, and prone to human error, yet it’s an integral function for every business. Successful companies want to handle payroll efficiently, so it’s best to leave it to the experts. Your employees depend on you to get it right with payroll so they can get paid accurately and on time.
Today we are discussing five advantages to outsourcing your payroll needs.
1. Leave it to the experts who are skilled in payroll
Outsourcing your payroll operations will also allow you to focus on other areas of your business that need greater attention. Leave payroll to the experts who are certified professionals and up to date on the latest trends and laws in the industry.
2. Relief from tax penalties
Having an outsourced payroll service helps large and small companies stay compliant and avoid tax penalties. When it comes to your federal and state taxes, don’t cut corners when handling your payroll. An outsourced payroll service can help you avoid tax penalties by automatically and electronically filing on your behalf; filing quarterly and annually, making your state and federal tax payments, and processing your year-end 1099 and W-2 forms for your employees—all with little action required on your part. What’s more, if they make a mistake, many companies will pay the mistake and any penalties or fines that result.
3. Time-savings
You and your team will be amazed by the amount of time and money you will save by outsourcing payroll. Leaving payroll to an outside resource can help reduce the stress levels your existing team is facing to push out your weekly payroll reports.
4. Access to a customer service team round the clock
One of the major benefits of having an outsourced payroll system is having access to a customer service team before and after office hours. If a last minute emergency happens, an outsourced team can help relieve stress from your in-office staff having to put in extra hours to resolve the issue.
5. Constant back-up of payroll data
Does your company have the internal storage space to house all of your payroll data? In the digital world of payroll, it’s important that your data is constantly being backed up and on hand should you be audited. In some businesses, reports are pulled on a daily basis. Outsourcing payroll allows your employee data to be housed in a safe and secure place without taking up your valuable internal server space.
Handling payroll is often a daunting task for most small and medium businesses. With so many federal and state laws and looming deadlines, it’s not hard to see why you would want to put your payroll in the hands of a professional service. Deciding to use a full-service payroll service is a huge step, and it pays to do your research. Choosing the right one can give you peace of mind when dealing with payroll compliance and make your HR and payroll staff more productive by removing a time-consuming burden from their workday.