What Are the Benefits of Outsourcing Payroll?

As a small business owner, what administrative task do you find the most tedious? For many, the answer is the same–completing payroll each week.

Your staff are counting on you to pay them correctly and on time each week, however, payroll is a slow and complex process. Is there any way to make the process easier?

Yes! One secret to success used by many small businesses is outsourcing payroll. There are companies out there that specialize in staff payroll and can manage all of the aspects of payroll for you.

Sounds good? If you want to improve your business, outsourcing can make all the difference—keep reading to find out more about the benefits of payroll outsourcing.

Outsourcing Payroll Will Save You Time

One of the biggest and best reasons to outsource payroll is that it can save you a massive amount of time. Completing payroll weekly or monthly requires an uninterrupted block of time where you can sit down, focus, and calculate each employee’s pay, then transfer it into their bank account.

Of course, all of your other job responsibilities don’t magically disappear during this time, so many finance or HR managers find it very difficult to find the time to complete payroll. This can be incredibly stressful and might even result in delays in staff being paid.

By outsourcing payroll, you’ll remove a huge weight from the shoulders of your finance team, freeing up their time to focus on other tasks.

It’s More Secure

Think about your current payroll system. How secure is it? Are you using state-of-the-art software, or something a bit more outdated?

For most small businesses, often on a budget, you’re likely to be using basic software to complete payroll, lacking in security features. Unfortunately, this leaves your company open to all sorts of risks from hacking, such as identity theft, data breaches, or record tampering.

However, when you outsource payroll to a qualified company, you can rest assured that they’re using only the most secure software. All of your confidential data, such as the personal details of your staff, will be protected from falling into the wrong hands.

Your staff are depending on you to keep their details, like their address, emails, and bank account details secure, so don’t let them down.

Avoid Mistakes

Let’s face it, no one is perfect. However, when it comes to payroll and employee labor laws, there’s not much room for error.

Employers have a legal obligation to look after their staff, providing them with at least minimum wage rates and overtime after 40 hours. Each state also has different labor laws, but even if your business operates across multiple states, there’s no excuse for paying staff incorrectly.

If you make a mistake with your payroll and accidentally underpay staff, or withhold their tax incorrectly, your company can get in trouble with the IRS–facing large fines.

Don’t take the risk when it comes to payroll compliance. Outsourcing companies know everything there is to know about payroll legislation, so they’ll look after your staff and pay them correctly.

Your Employees Will Be Happier

One unexpected benefit of outsourcing is that it can boost employee morale. How so?

Think about it–looking back, have you ever been late in doing payroll, or slow in sending out payslips? If so, it’s likely to annoy your staff—they depend on being paid on time as they need to look after their own bills and expenses.

With payroll outsourcing, staff will be paid promptly and correctly, which is going to make employees happier. If they know they don’t need to stress about when money will hit their bank accounts, it relieves anxiety and boosts morale.

Over time, this can even improve staff retention, as employees are glad to continue working for a company that treats them well.

Payroll Outsourcing Lets You Prioritize Other Tasks

If you don’t need to worry about payroll each week, think of how much time that would free up to dedicate to other projects. You’ll be gaining plenty of time each week that you can use to focus on other priorities.

Is there a project at work that you’ve been meaning to start, but just haven’t had the time? If so, outsourcing payroll can, in effect, buy yourself more time each week that you can use to expand your business and accomplish more.

Enjoy Expert Assistance

Payroll services are experts in their field, with staff who are trained in all of the latest payroll developments. If you have any questions about the payroll process, or are thinking of making some changes, their guidance can help you get everything done correctly.

You and your employees will be in good hands, so there’s no need to worry about anything going wrong. Enjoy the peace of mind, since you’ll have an expert team behind you!

Outsource Your Small Business Payroll Today

When outsourcing payroll, your company can start enjoying all of the benefits mentioned above.

Ready to get started? If so, the first step is to start researching payroll providers, learning more about their costs, what they can offer, and how the process works.

You might want to look for companies with experience in your industry, as this can be a good sign that the company is an expert in your line of work. Then, make a few inquiries to find out how you can get started—most payroll companies will offer you a free consultation.

Then, hand over the reins and you can get back to what you do best—building your business!

If you found this article helpful, please read on to find out more.