If you own a small business, you know how stressful and overwhelming it is to make sure that everything is getting done. With all of the other responsibilities you have to take care of, handling payroll can quickly turn into a headache. This is why many small to midsized businesses often outsource their payroll services to a company that handles payroll on a daily basis. Outsourcing your payroll is extremely beneficial to all types of companies, but it’s especially attractive for businesses that don’t have their own HR department. Many small to midsized businesses find that outsourcing payroll is easier and less stressful than handling it in-house. Outsourcing payroll can give your business peace of mind knowing the job is getting done right and is in compliance with governing laws and regulations.
Why outsource your payroll
Many businesses in the United States process their payroll internally, but it’s not always the most cost-effective option for small businesses. Handling payroll internally requires purchasing an accounting program and extensive training on how to use it. In addition, businesses that do payroll in-house need to keep up on changes in tax laws and requirements that happen on an ongoing basis.
Outsourcing your payroll makes sense if your business doesn’t have an internal HR professional or department or if your HR staff is already overworked. Although outsourcing payroll can be a big company expense, it can also be a big headache if it’s not done correctly. Outsourcing your payroll provides improved compliance and accuracy in all payroll services and can greatly reduce the amount of time that your business spends on payroll internally.
Basic payroll services include calculating payroll and tax obligations for each employee. However, many payroll companies also offer more than just standard payroll services. Some payroll companies offer integrated HR software systems that can track employee benefits information. Other companies offer employee self-service, time and attendance, HR management and benefits administration. If you’re looking to outsource more than just payroll services, look for a payroll provider that also offers these services so that everything can be integrated into one system.
Choosing the right provider
Choosing the right provider is an important decision that requires you to consider many factors. Besides looking for a provider that offers the services you require, it’s also important to choose a payroll service that offers great customer service. Even though someone else is handling your payroll, you’re likely to have some questions down the road. When this happens, it’s important that the payroll provider answers these questions in a timely manner.
As with any business decision, cost is an important factor as well. When your business is choosing a payroll provider, make sure that you know exactly how much it will cost every month for the services your business needs. Remember – even though the cost may seem expensive, it’s often less expensive than handling payroll in-house.
There’s no right or wrong answer when it comes to deciding whether to outsource your payroll or to handle it in-house. However, outsourcing your payroll ensures that employees are getting paid on time and that all payroll services are in compliance with laws and regulations. Outsourcing your payroll can greatly benefit your small business and will ensure that the job is being done correctly.