One of the top priorities of every business is to maximize proficiency and efficiency as much as possible. The better you can streamline the tasks of your business, the easier it will be to manage things. As a business owner, you know how important this is.
So what about when it comes down to payroll? Should hire a full-time employee to handle this task? Or would it be better to outsource it to payroll services instead? That’s a great question, and hopefully the following list of pros and cons will help you figure out what’s best for your company
It’s Not Only Efficient, But Cost-Effective Too
This is a major plus for businesses working with limited resources and funding. If you don’t have the manpower to handle the task of payroll and your capital is slimming, you can cut costs by using payroll services.
Instead of paying an employee 40 hours per week, you can pay for only the time spent on your payroll projects. The money saved can be used towards something else, like expansion, upgrades and marketing.
Get Your Taxes Done On Time
Your payroll accountant is one person, this means they have to do all the tax work, as well as monthly payroll tasks at once. This can slow down submitting important tax documents to the IRS and your employees.
You can avoid this issue by outsourcing this task to a payroll service that can handle that one task. This means chances of having everything submitted on time increases. According to BusinessWeek, about $4.5 billion in penalties is related to employment taxes each fiscal year. Don’t be one of the businesses getting penalized next year.
You Don’t Have Complete Control
This can be a good or bad thing. Since the payroll tasks are now being outsourced, you won’t have as much say visibility over what’s being done. But the idea of having it tasked to a professional that can get things done on time and within your budget may make it worth having less control.
Security and Accuracy Issues
Just because you’re outsourcing your payroll doesn’t guarantee everything will be perfect. It’s still a human being doing the work. This is why it’s so important to outsource to a firm that has a great track record of success. Not all payroll services are created equal, so do your due diligence before hiring a company.
Compliance Best Practices
Aside from getting your tax returns done on time, a payroll service can also aid in labor and employment compliance. This is done using HRIS systems and time and attendance solutions. The bigger your business gets, the more important this becomes. It’s important to use a provider that is capable of growing with your company and mitigating risk in such areas.
Continue Saving Money
As a business owner, you want to cut costs in every aspect of your life. In your personal life, you can use Groupon to find deals on the things you need and want. For example, you can get coupons for shops like Personalization Mall, and many more.