This post describes the benefits of outsourcing payroll in your company to payroll services. Find out how many small companies waste their time and resources managing their own payrolls.
Does your small business run its own payroll administration? With the advent of modern technological advances that can streamline businesses, doing your own payroll processing is the equivalent of using a typewriter instead of a laptop. You may think you're saving money without using payroll outsourcing services, but you've lost value without spending valuable time building your business. Your business can transform from a small start-up into a large enterprise in a shorter period of time by letting an outside company handle administrative tasks, like payroll processing. Your business could also improve other support services like marketing, customer service, new products, etc. A quality payroll service saves nearly every business money in the long run and more importantly, gives you more time to focus on growing your company. First, a payroll outsourcing service allows you to save on salary costs and at the same time reduce the costs of bookkeeping and accounting. A study conducted by PwC confirms that payroll outsourcing is actually less expensive than handling it internally. Secondly, allowing another company to handle your payroll processing puts that responsibility into the hands of a specialist or a team of specialists who knows the ins and outs of payroll administration. Also, having payroll outsourcing services handled by an outside company eliminates the need to constantly update payroll tax schedules and software. Payroll outsourcing services also enable employers to offer direct deposit and other conveniences to their staff. As per Business Week, "processing your own payroll requires 54 steps and eats up between 40 to 60 hours each year, even for two-employee companies." How much would you and your business benefit from an extra week and a half of productivity each year? Additionally, payroll processing is extremely time consuming, requiring precise tracking of complex withholding tables, payroll regulations and payroll laws. Substantial calculations, mountains of paperwork and frequent check printing (and corrections) eat up even more of your valuable time. Don't forget about the dreaded task of making proper end-of-year filings for government taxes. Plus, in-house payroll processors must handle time-consuming daily employee inquiries. Retaining a payroll service puts all of these grinding responsibilities onto their shoulders instead of yours. Comments are closed.
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