1. Free up your time- Payroll is very time-consuming. To make sure you are up to date in all laws and making sure the checks are calculated correctly every time can take some serious work. Outsourcing payroll can free up you and your employees’ time to pursue more important activities that can acutely generate income.
2. Cost Reduction- Most people end up paying their bookkeepers or an employee much more to do payroll than it would cost to outsource it. The average small business with 10 employees will spend $2,600 per year in direct labor costs with payroll. However, a lot of the time this is much more … especially if you put a bookkeeper on your payroll and have to pay their annual salary. Sometimes, it’s much cheaper outsourcing payroll than hiring someone to do the payroll for you.
3. Payroll Expertise- Most business owners don’t’ have time to keep up with the constant regulations changes. Did you know the Federal Government alone has 1000 changes a year? By outsourcing payroll, you can take advantage of payroll expertise which normally is only available to large companies. Payroll companies have Certified Payroll Specialists and keep up with the constantly changing regulations, withholding rates, and government forms all year.
4. Technology Headaches- Don’t worry about if you have the most constant tax tables installed or if you know how to make a backup and restore in case your computer crashes. Outsourcing payroll removes technology headaches because they do it all for you.
5. Avoid business risk- If you hire someone to do your payroll, not only could they get a new job and leave you stranger with nobody trained to take over, but they could leave with all the passwords and codes for you to continue easily. Not to mention we always hope people leave on good terms, but if they don’t, they could sabotage your payroll files. Outsourcing eliminates that business risk.