Many small businesses and organizations are realizing the benefits in outsourcing payroll services. In addition to processing payroll, such services usually include issuing W-2 forms – a task even the most seasoned professionals find cumbersome. Organizations that have employees working varying amounts of hours each week, experience significant turnover, or have to pay payroll taxes for more than one state are likely to find that outsourcing payroll not only saves time, but is cost-effective as well. There are several benefits to outsourcing payroll that include:
- Freeing Up Your Time
Processing payroll by hand is a time-consuming process. Outsourcing payroll can free up staff time to pursue more important and revenue-generating activities.
If your business has fewer than 20 employees, there’s a very good chance you can save money by outsourcing your payroll operation. Do the math; figure out how many hours your employees are devoting to payroll-related activities. Calculate how much you’re spending and compare the amount to the plan The Employer Group has to offer. Also, be sure to factor in the money your business spends on tasks like printing and distributing checks, creating tax documents, delivering W-2s at the end of each year, assessing garnishments, etc. You will probably be surprised by the result.
Certain types of employment can lead to complicated payroll structures or scenarios. It pays to have a wealth of experience at your disposal. A good payroll service provider will know all of the ins and outs of payroll-related tax laws and the latest government regulations.
Payroll mistakes can be painful, upsetting and stressful – on you and your employees. A good payroll service provider is far less likely to err. You are paying for the provider’s expertise, knowledge and finely-tuned cross-checking procedures.
- Avoid Technology Headaches
A constant question for small business owners is whether they have the latest versions of their payroll software and the most recent tax tables installed on their computer. Using the wrong tax tables can result in stiff penalties. According to the IRS, 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings and payments. Outsourcing payroll removes those headaches and keeps payroll running smoothly.
Most business owners don’t have time to keep up with constantly changing regulation, withholding rates, and government forms. There’s a lot to be said for the peace of mind that outsourcing payroll services can bring to a business owner or manager. You’re left to focus on running your business knowing your payroll obligations are dealt with correctly, efficiently and lawfully.
Give The Employer Group a call about processing your payroll!