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3 Reasons to Outsource Payroll

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The average small business has about 10 employees. As an employer, you know that building a workforce is essential to business growth. But, this does come with certain obligations and challenges, especially payroll processing.

Your workers, whether they’re permanent, contracted, full-time, or part-time, must be paid their rightful dues in a timely manner. Delaying salaries or making errors when computing your workers’ earnings is a sure way to demoralize them.

There are two ways to approach payroll: take the DIY approach or outsource. In this article, we’re telling you why outsourcing payroll is a smart move.

1. Save Time

If you’re a small business owner, you certainly have a lot of tasks on your plate. And if you don’t an in-house payroll specialist, you’re in charge of processing payroll.

Of all the hats you need to stop wearing, payroll processing comes first. It’s a time-consuming activity.

You see, everyone wishes payroll was as simple as clicking “pay” on accounting software. Before you can pay your workers, you need to track their hours (if their pay is hour-based), compute overtime and other benefits, determine the amount of taxes to withhold… in short, there are a lot of calculations to do. This can take a good chunk of your time.

Outsourcing payroll completely gets the task off your hands. This saves you a lot of time, which you can dedicate to other business tasks.

2. Ensure Payroll Processing Efficiency

A whopping 82 million workers have experienced a paycheck error. What’s more disturbing is over a third of American workers have been forced to make a late bill payment because of a payroll error.

Clearly, payrolls errors hurt everyone. Yet, if you’re taking the DIY approach, you’re more likely to make these errors.

The best way to take errors out of your payroll is to outsource payroll to the experts. A payroll services provider has the resources to process your company’s payroll efficiently and without error. You can rest easy knowing that your workers will rarely complain about getting paid the wrong amounts or late.

3. Ensure Compliance with Payroll Regulations

There are various federal, state, and local laws every employer needs to adhere to.

For instance, the Wages and Fair Labor Standards Act establishes federal requirements for minimum wage, overtime pay, payroll records management, and youth employment. You might be familiar with such laws, but if you’re anything like most small business owners, you don’t much about them.

How are you going to ensure your payroll process doesn’t violate the law when you don’t know much about it? Are you going to hire a lawyer to advise you on what to do?

Outsourcing to a payroll service is the best way to ensure your company is compliant with the relevant laws. These firms stay on top of regulatory changes and will implement the necessary changes to ensure your business remains compliant.

A payroll code violation can lead to hefty fines and lawsuits.

Outsource Payroll Today!

Outsourcing business functions comes with significant benefits. Payroll is one of the functions that you should outsource from the first day. When you outsource payroll, you save time and money and ensure payroll accuracy and efficiency.

Find a good payroll processing partner and keep tabs on our blog for more small business advice.

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