Payroll can be a difficult department to manage – both for large and small businesses. There is a huge number of different rules, regulations, and scenarios to take into account when managing people’s salaries, and accuracy is of the utmost importance. According to Deloitte, 45% of businesses that outsource their payroll say it’s to avoid errors and mistakes.
So, if your small business can’t afford to have a specific department, or your large enterprise is looking for a way to reduce the number of personnel required, here’s how and why you should consider outsourcing your payroll.
Taking the reins off any process within your business can be difficult, but there are many benefits. If you’re wearing a million different hats to keep your company afloat, and just don’t have the resources to get everything done, then it’s probably time to consider outsourced payroll.
Payroll outsourcing services usually automate many of the processes required for the job. Meaning there’s one (or a hundred) less thing for you to think about. The outsource team will do all the confusing calculations regarding tax, timesheets, sick days, and the rest.
The benefits of outsourcing payroll
Rather than hiring a payroll employee and paying them an annual salary, an outsourced payroll service will be much more cost-efficient. But this isn’t the only way it saves you money. If you’re currently sorting payroll yourself, or have roped another employee into doing it, you’re reducing the amount of time that’s actually being dedicated to lead generation or making money. So, by letting staff do their real jobs, and paying for an outside payroll company, you’re making more money while saving more money. What’s not to love about that?
In a similar sense, the less time you’re focusing on payroll, the more time can be spent on the real work. More time to work means higher productivity and a good chance of bigger profits.
Accuracy & penalty protection
By handing over controls to the experts, you can protect yourself from tax penalties and other issues. Errors can easily be missed by the untrained eye – which could ultimately cost your business a lot of money and headaches in the long run.
How to outsource payroll
So you’ve got the benefits, and there’s very little drawback. So how do you go about outsourcing?
Do your research
Whoever is in charge of your payroll plays a pretty integral role in your employee’s happiness. Afterall, nobody likes wage errors or delayed payments. With that in mind, you need to make sure you do plenty of research into the company you’re interested in to ensure they’re professional and can be trusted.
Determine their role
Payroll companies are often able to provide other services like employee benefits scheme management and HR, so it’s good to know what your options are and what you’re looking for.
Outsourcing payroll is scary and should be researched properly before taking any chances. But it can certainly save you time and money in the long run – making it almost silly not to try!