Is Outsourcing Payroll Right for Your Business?
Is Outsourcing Payroll Right for Your Business?

Is Outsourcing Payroll Right for Your Business?

What would you say if someone asked you why you process payroll in-house? Maybe your response would be, “That’s the way we’ve always done it,” or “It’s cheaper this way,” or “There’s never been a reason to change.”

The truth is, outsourcing payroll processing and tax filing is a smart way to ensure you are paying your people—and the government—correctly. The risks of doing it wrong are just too great: employment lawsuits, Department of Labor audits, IRS tax penalties, and the list goes on. If payroll isn’t the core of your business, it may be a good idea to outsource it.

Compare the two lists below: one includes the tasks, responsibilities and liabilities that come with doing payroll in-house. The other shows your responsibilities as a Paycor client.

In-house processing procedures and responsibilities

Processing a paycheck
# Calculate employee earnings
# Determine pre-tax deductions
# Calculate Social Security
# Calculate Medicare
# Calculate federal withholdings
# Calculate state withholdings
# Calculate additional deductions
# Total the amount of deductions taken
# Subtract deductions from earnings to calculate net pay
# Write or print checks
# Write or print check stub
# Sign checks
# Stuff and seal checks and stubs into an envelope
# Repeat for each employee

Responsibilities & liabilities
# Report all new hires to the state
# Calculate and pay employer and employee liabilities: Social Security and Medicare, federal unemployment insurance, state unemployment insurance, state withholding, local withholding, disability etc.
# File employer federal, state and local payroll tax returns

Paycor client responsibilities

# Go online anytime to add or terminate employees
# Report hours worked or salary earned
# Get back to running your business

See the difference? Let Paycor handle payroll processing and tax filing for you, so you can get back to your business. Read more about the benefits of outsourcing to a payroll and HR provider, then contact us to learn more.

More to Discover

RISE Web Summit: The Humble Employee Handbook is Actually an Important Risk Prevention Tool

RISE Web Summit: The Humble Employee Handbook is Actually an Important Risk Prevention Tool

Why are Employee Handbooks so important? If written properly, they could be a valuable tool in the workplace. If written poorly, can cause confusion, inconsistency and increased litigation. We will discuss recent rulings highlighting this topic and provide what to include in your organization's humble employee handbook.

RISE Web Summit: Auditing Your Employment Policies and Practices

RISE Web Summit: Auditing Your Employment Policies and Practices

It seems like you need to be a lawyer to run a business these days doesn’t it? Thankfully, you don’t. But you do have to stay on top of the ever changing employment law landscape and the trends in employment law claims, both on the federal and state level. There is no better way to rise above the risk of being hit with a class action, a DOL complaint, or a harassment or discrimination lawsuit than periodically auditing your employment policies and practices. Join us for this session and we’ll teach you the steps to take and what to look for as you conduct your audit.

RISE Web Summit: Benefits Compliance: Rise Above Common Pitfalls

RISE Web Summit: Benefits Compliance: Rise Above Common Pitfalls

Compliance with IRS and DOL regulations goes well beyond your major medical and 401(k) plan. From ERISA to COBRA to Section 125 Plans, learn how to avoid (or address) the most common compliance pitfalls BPC has seen over 4 decades of service as a third party administrator. In this session you will hear real life stories and practical tips for keeping your benefits program on the straight and narrow.

RISE Web Summit: The Art of Compliance

RISE Web Summit: The Art of Compliance

HR compliance, tax compliance, OSHA compliance – fill in the blank! Compliance can feel like a Picasso painting or maybe more like a self-destructing Banksy. If you’ve felt the same way, join us as we discuss best practices for designing and molding a robust compliance function. Along the way we’ll share how you can mitigate risk, structure teams, and ultimately transform compliance into a masterpiece.