Why Your Small Business Needs a Payroll Service
Why Your Small Business Needs a Payroll Service

Why Your Small Business Needs a Payroll Service

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.

small business warehouse

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.

reviewing-payroll-documents

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.

More to Discover

Payroll Software with Direct Deposit

Payroll Software with Direct Deposit

Organizations continue to look for ways to become more efficient without compromising service or security and choosing a payroll service that offers direct deposit is a good way to start. Eliminating paper checks from your payroll processing not only saves paper (win for the environment!) but also saves your workforce the hassle and time it takes to cash or deposit every paycheck. The majority of employees today prefer electronic transactions and the immediacy of direct deposit. If you’re considering a new automated payroll solution, it’s worth it to invest in one that can accommodate direct deposit services. But before you buy, review these frequently asked questions about the process. What are the Benefits of Direct Deposit? Instant...

Final Paycheck Laws by State

Final Paycheck Laws by State

Once upon a time, it was the norm for employees to stay with their employer for decades, oftentimes retiring from the same business at which they started their career. Today, however, employees are more transient, bouncing from job to job at various companies throughout their work life. As such, receiving a final paycheck from an employer is becoming commonplace. As an employer, it’s important to know the legal requirements surrounding an employee’s final check. Some states have differentiating laws depending on whether the employee quit or was terminated. Regardless, the final check should contain the employee’s regular pay from the most recent pay period along with any additional types of compensation such as accrued PTO or a bonus if...

How To Calculate Overtime Pay

How To Calculate Overtime Pay

Calculating overtime pay continues to be a hot topic. The Department of Labor plans to introduce new federal overtime regulations in 2019 which would redefine the current boundaries of whom is eligible to receive overtime pay. They also plan to revisit the way employers must calculate a worker’s “regular rate of pay” for Fair Labor Standard Act (FLSA) purposes. This could lead to a wider pool of employees receiving overtime wages. But before we get ahead of ourselves, let’s dive into some key factors to remember when calculating overtime. Who Can Receive Overtime? In the workplace, you’re either considered an “exempt” or a “non-exempt” employee based on your specific job duties. Only non-exempt employees are eligible for overtime pay...

Rise Above the Status Quo: An Executive Summary

Rise Above the Status Quo: An Executive Summary

Our Biggest and Best Web Summit Yet! More than 18,000 people registered for Paycor’s two-day online Rise Web Summit, held in February, where industry experts offered advice on all things HR, from employee engagement to hot button compliance issues. If you didn’t get a chance to watch the webinars live, feel free to watch them on-demand. In the meantime, here’s a quick overview of each session and some of the key takeaways. The Future of HR Now more than ever, executives depend on the unique insights HR can bring to the table. However, there is a problem. Many HR leaders just aren’t thinking big enough. Our keynote speaker, DisruptHR’s Jennifer McClure, outlined four key strategies HR leaders can use to push past their comfort zones and...