8 Reasons You Should Outsource Payroll
Are you a small business owner who is handling payroll processing yourself? While payroll may seem like something that you can operate on your own, there are many demands that come along with handling payroll including keeping up to date with payroll laws, tax deposit rules, and filing state and federal mandated forms on time so you are not penalized for missing a deadline. Outsourcing payroll not only takes care of all of these functions, but it allows the business owner to focus on aspects of the business that directly affect its future. Through outsourcing payroll, multiple benefits come along such as the following.
1. It saves you time.
Operating payroll services requires a lot of time that many small businesses do not have. From entering data to researching new laws or updates, the amount of time that payroll takes up is not desirable to many business owners. With being able to outsource this service, you and your employees can offer their full attention to the direct needs of the business.
2. It saves you money.
Through outsourcing payroll, you will not require the need to hire someone that is specialized in this particular service, reducing the cost of overhead. Besides the need to hire someone in this field, you will be saving money by saving time. All of the hours of time that go into payroll accounts for hours of work employees will need to be paid for. All of this can be avoided by hiring an affordable full-service provider.
3. No need to worry about payroll tax filing.
Payroll is a complex and risky business operation, especially if you do not have an expert in this field who is handling tasks. Federal, state, and local payroll tax laws are becoming more and more detailed. Without having the time to research, learn and apply these updates, you run the risk of calculating or filing your payroll taxes incorrectly or late. By outsourcing payroll, you never have to worry about these issues again.
4. You eliminate security risks.
Through having an employee operate payroll tasks, you run the risk of tampering of company records, embezzlement of funds, or identity theft. Even with the most trusted employees, it is something business owners need to be cautious of. The use of in-house payroll software is also something you need to be careful with and do your research to see how secure your payroll data really is. Through outsourcing payroll with a reputable company, you can rest assured that your confidential payroll data is secure at all times, as it is a huge part of the service provided to clients.
5. Being able to simply understand reports.
Payroll operations can be a difficult subject to learn and understand. Receiving payroll reports tailored to your specific company is a huge benefit when looking to outsource payroll. This way, you will have all payroll information explained in a way your company will clearly understand. Looking into a full-service company who also prepares union reports and others as needed is something to consider for your business.
6. Online payroll processing is available.
Make sure you are hiring a company who can also provide online payroll processing. With online payroll processing, your employees will have 24/7 access to their information such as current payroll stubs or last year’s W-2 forms. This allows the employees to be able to request changes to their withholdings, etc., without having to take any time away from running your business.
7. Reporting issues are taken care of.
If any reporting issues come about with child support audits, Worker’s Comp audits, 1099 processing, W-2, and Wp3 processing, preparation of federal and state registration forms, or any other issues that may arise, the full-service company will be able to take care of it for you. This will also save your business additional time and energy.
8. The expertise of hiring the professionals.
Hiring professionals who have expertise in payroll will put your mind at ease knowing that they will take care of every last detail with payroll processing. With operating payroll comes many complexities that only take your time and money, ultimately hindering the business itself. Being able to take over the tasks that come with payroll is what a professional company is trained to do and is part of the service they provide to you.
If you are considering outsourcing payroll, consider all of the benefits that come along with it such as saving time and money, securing your data, and allowing you to no longer worry about handling payroll functions and all of the complexities that come along with them. David Mills CPA, LLC provides expert accounting and financial services to both small and medium businesses, as well as to individuals. Our CPAs can assist you with a multitude of accounting services in Peoria, IL, Morton, IL, and the rest of Central Illinois. If you are interested in payroll services or any other financial services, you can contact us here.