Payroll is critical for businesses and a pain point for most small business owners. Think you can handle payroll yourself? Sure, but below are five reasons why you should outsource your payroll if you own a small business. Read on if you want to make strategic business decisions and also keep your employees happy; your #1 asset.
1) Time Savings
As the business owner, you don’t want to be wasting your time on processing payroll and making sure you are up to date on the current payroll rules & regulations. You will have to handle annual filings such as W-2’s & 1099’s and make sure they are sent out and filed by their due dates. Last payroll does not take vacations and if you want to make sure your payroll gets processed timely & accurately, consider outsourcing it.
2) Reduce Costs
Payroll providers often receive a wholesale discount for payroll software and if you have 30 or less employees, you probably don’t need a full time payroll department. By outsourcing your payroll you can save yourself money by not hiring a full-time employee, as it would be cheaper to pay a vendor rather than an employee. It is also easier for an outsider to process payroll as they have no tie into the company and do not care what another coworker makes.
3) Avoid Penalties & Mistakes
You would be surprised how easy it is to forget to file a report and then your company owes a $500 penalty for filing late. We have also seen organizations accidentally fill out reports incorrectly because they didn’t understand how to read the form. Long story short, outsource your payroll to avoid costly penalties and mistakes, which could be saving you more money in the long run.
4) Security
There have been so many security breaches the past couple of years and most all of them could have been avoided. When you deal with an outsourced payroll company they are aware of the current scams and take privacy & security very seriously. They are also aware of the data retention rules & regulations and will send payroll information to you securely.
5) Piece of Mind
When you outsource payroll, you can remove one of the huge pain points in owning a business. You can receive piece of mind knowing someone more experienced is handling your payroll, as long as you do your research before, and hire a quality payroll processing company. At the end of the day, your employees are happy and you are saving money, so what’s your reason for not outsourcing?
Reach out to CFO 4 Your Biz today and see how we can help you with your Payroll.