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"Doing payroll" doesn't have to be something you dread at the end of every 2 to 4 weeks, taking up far too much of your valuable time and loading your down with a lot of extra stress.
There are many aspects of running a business that can be handled more efficiently by outsourcing, such as employee benefits and HR admin, for example. And payroll administration is often best handled this way as well.
Here are five of the best reasons to outsource your payroll administration.
1. Save Time, Money, And Stress
The most obvious reason to outsource payroll admin is because you will no longer be tied up doing payroll for hours on end every pay period. Keeping track of income, deductions, wage garnishments, and hires/fires for all your employees can be a complex and tedious task.
Having a professional company do it for you means avoiding costly errors, getting it done more quickly, and freeing up time for you to do other things - like manage your business!
It can also save you money on the costs of printing out checks and save paper (which helps save trees and forests!)
2. Avoiding IRS Penalties
About 40% of small businesses pay an IRS penalty every year, which typically amounts to hundreds of dollars, for filing late or for making some kind of error.
Errors on payroll bring especially hefty fines, and they may lead to audits as well. And your employees will also be upset if they learn you deducted too much or too little from their paycheck or simply forgot to pay them for any work they did earlier in the year.
Outsourcing payroll makes errors extremely unlikely, generally sees them corrected quickly if they do occur, and gives your employees "someone else to blame" for them.
3. Enhanced Access To Payroll Data
Both you and your employees can gain extra services and constant access to relevant payroll data when you outsource.
This means an employee can check on his/her checks and benefits online. It also means you can view all invoices, employee data, employee benefits enrollment information, and more that may be included on the system.
And you can conveniently download and print out information and custom-make reports as well.
4. Better Payroll Security
The risks of identity theft, embezzlement, tampering with payroll data, and other security violations are much lower when payroll is no longer done in house.
You may trust your employees and try to exercise some basic security protocols, but you probably can't afford to have all records guarded 24/7, and most security breaches that affect payroll are done in-house by people you thought you could trust.
5. It's Easier To Offer Direct Deposit
Using a payroll admin provider normally includes the option to let employees set up direct deposits for their paychecks if they wish.
Many employees greatly prefer direct deposit to having to make a trip to the bank, and yet, it can be difficult for small businesses to conveniently and affordably allow direct deposit service without outsourcing payroll.
Plus, direct deposit gets rid of the risk of paper checks being tampered with and keeps your business' bank account number confidential, instead of boldly printed on the face of every employee check you issue.
There are many important benefits for businesses of all sizes, but especially for small businesses, who choose to outsource their payroll administration.
To learn more about outsourcing your business' payroll, contact Summerlin Benefits Consulting today!