With being a business owner, there are a number of responsibilities to complete in order to keep your business running and one of the most important is being able to pay your employees. One might think this to be a simple task of multiplication and division, but there is a lot more that goes into completing payroll. Many small business owners have opted to outsource their company’s payroll for a number of beneficial reasons. If you are thinking about handling the payroll yourself, you may want to consider some of the reasons as to why many businesses choose to have other company’s handle it.
Payroll can be difficult to handle due to the jargon and confusion of all of the taxes implicated into it. Having another company take care of your payroll, especially one that is also an accounting firm, means the correct amounts will be withheld from your employees checks and another company will also take care of sending out W-2s for your employees at the end of the year. Government regulations on payroll can be challenging to understand, where the government takes no lenience on those who don’t understand their regulations. Meaning if you file your payroll incorrectly than it can lead to audits and expensive penalties due to your errors.
As an owner you want to handle all aspects of your business, but in taking the time out to complete your payroll every week, two weeks, or per month can leave little to no time for areas you are really needed in your business. It can ending up costing your business as you are not available to implement ways in bringing in more customers and revenue; this can end up costing you more than if you were outsourcing your payroll in the first place
Another reason it can also be more cost-effective to outsource your payroll, is from not needing the latest technology to complete payroll and not having to also buy security software. Your employees’ personal information can easily be stolen if you do not have the proper security measures for your payroll; an outside company will already use that software and it will not have to be an extra expense to you, nor will you need to purchase and update the costly software yourself.
An outside company will have an experienced and expert staff in their payroll departments, who will be kept aware of all the continuous updates and government regulations. You can remain confident in knowing that and outside company will be completing your payroll accurately, so both you and your employees will never have to worry about penalties or fines. In having an employee handle the payroll, they may call in sick, quit, or leave unexpectedly; this will leave you with having to complete payroll or your employees waiting on being paid. Outsourcing your payroll will ensure you and your employees will always be paid and be paid on time.
In the end, many small businesses find that it saves them both time and money to have their payroll completed by an outside company. They also enjoy having the peace of mind that they will not have to worry about fines, penalties, or issues with the IRS due to incorrect payroll. As a busy business owner it would