As a small business owner, you have a tremendous number of “to-dos” on your plate. You know, all of those little things like building your brand and establishing relationships with customers. When processing payroll in-house is added to your list, time-consuming manual tasks unfortunately become a significant component of the “to-do” equation. You don’t have time for that, but your people still need to be paid. Instead of managing payroll on your own, you should be focused on growing your business and leave payroll processing and tax filing to the experts.
Let’s look at some of the benefits you can realize for your business and yourself if outsourcing your payroll is the right decision for you.
1. Outsourcing payroll is a time-saver
If you’re currently managing payroll in-house, you’re painfully familiar with the time and careful attention to every little detail it takes. And, as your company grows, the process becomes even more difficult. That’s time you could be spending growing your company. Making the decision to outsource payroll will almost instantly free up all those hours you were spending calculating time and making sure the appropriate deductions were withheld.
2. You can reduce overhead
Your time is valuable, so saving time is money in the bank. If you compare the amount of time you were spending running payroll every week to the cost of a small business payroll service, you should actually realize a cost savings.
3. Your employee data will be more secure
In-house payroll can also be extraordinarily risky, especially when you consider all of the employee data you maintain: Full names, addresses, salary information, and Social Security numbers. In the wrong hands, this information can lead to identity theft. If your system isn’t secure, you also run the risk of employee theft.
“I’m the only one with the login and password,” you might be thinking. That’s a step in the right direction, but what about the network or server your data is housed on? Security flaws there could leave you open to data theft.
When you partner with a payroll provider, your data will be stored on highly secure cloud-based servers that employ the latest technologies in encryption, as well as redundant data backups.
4. Someone else manages that agonizing government compliance
We’re going to go out on a limb and guess that your area of expertise does not lie in the convoluted labyrinth of federal and state government regulations; not many small business can claim that either. But that doesn’t mean you’re off the hook for missed filing deadlines or employee misclassification errors (among other compliance pitfalls). If you’re processing payroll in-house, mistakes you make can trigger a government audit resulting in significant penalties and fines.
It’s impossible to keep up with regulatory changes when you’re trying to run your company. A payroll service for small business has teams that are solely dedicated to keeping up with the ever-changing compliance landscape and understanding the rules around tax and employment law. And, if mistakes are made, they’ll fix them and shoulder the liability for any errors.
5. Most providers offer more than payroll
As your business grows, you may find you’ve outgrown having nothing but a payroll service and time clocks and realize you need additional people management services.
A good payroll provider can also offer services such as a benefits program, workers’ compensation management, and HR solutions such as performance management or an applicant tracking system.
Anxiety-free payroll management
Professional payroll service providers specialize in the intricacies of government compliance and regulations, taxes, and human resources leaving you free to grow your business. At Paycor, we deliver a unified human capital management solution that includes payroll and is designed to help you succeed. Explore our solutions to learn how Paycor can help you save time, money and headaches.
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