As a business entrepreneur who has been around the block for some time, you are not foreign to the practice of outsourcing payroll responsibilities.
But despite being aware of the perks it encompasses for small businesses, you are still hesitant to give it a go.
Why is that so?
Could it be because of in-house debacles? or are you just waiting for a sign to pop?
There can be multiple reasons why you are not too sure about outsourcing your payroll to a third party. And we believe the conflicting suggestions from your peers aren’t helping the case either.
However, if a sign is all it takes for you to roll on with the idea of outsourcing payroll, we will give you 5! No, we are not talking about open-your-eyes-to-see-an-ad-from-a-payroll-vendor kind of sign. Instead, these signs are more like a cry for help that you must hear to align your business and payroll responsibilities.
5 Tell-tale Signs that Your Business Could Use a Payroll Vendor!
If you can relate to any of these following concerns, then it’s time for you to sit down and consider outsourcing payroll.
Too many errors to ignore
Did you know approximately one-third of employers make an error in payroll?
Unfortunately, it is often the small business owners that fall prey to such mistakes. For example, nearly 40% of small businesses pay $845 each year to IRS as a penalty.
Mistakes on the payroll are expensive. This is why you should not dismiss them. However, getting your payroll responsibilities sorted by amateur staff with little to no experience in the field can be problematic. Instead, consider the third-party arrangement to ensure error-free filing.
Surging staffing cost
Small businesses are again at a disadvantage here when it comes to absorbing the surging cost of payroll departments.
Creating tax documents, printing and distributing paychecks, and additional wage of staff associated with payroll often overshoots a small business’s budget. If you think you are in the same boat, you should reconsider outsourcing payroll.
Time-consuming
Payroll is a complex system and could keep you and your administrative team busy for a long time. Since many staff fills in multiple roles at small businesses, keeping payroll up and running could be a big concern during the peak season. If you have been spending a lot of time going through payroll responsibilities, it is time to appoint help.
Overwhelming compliances
We have already covered that payroll mistakes could land you up in legal problems. But, at the same time, it is highly recommended to be careful when there are regulatory mandates in place.
Keeping up with the new employment tax laws, federal mandates, local and state regulations is a mammoth task. Even large and seasoned businesses struggle to get it right sometimes. However, they are financially equipped to account for the resulting liability. You, on the other hand, should steer clear of landing into a debt pool.
Relieve your staff from the extra burden that comes with payroll compliances. Outsource these legal formalities to a payroll vendor, and wash your hands off the worries.
Frequent payroll software upgrade
Using outdated payroll systems and tax software is a big NO for businesses, regardless of their scale. Such a practice increases the risk of data breaches and induced losses.
Then again, upgrading software and payroll system cause a financial dent. So, if you think upgrading software is a hassle and a financial burden that you are unwilling to take, you should look for payroll service providers.
The professional payroll vendors use the best of software and cloud-based systems to carry out obligations. Also, you do not have to pay for frequent upgrades as the same is included in the service charge.
Besides these, if your administrative staff appears to be too overworked, there is a problem, and you must look into it. Of course, outsourcing HR and payroll responsibilities can take some steam off their workload. This will also allow you to utilize their talent in improving your core functions.
Think you could use some professional assistance on payroll responsibilities? Contact us now!
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