Hiring a new employee for your organizational growth is an indispensable milestone for every small business. However, staying on top of the payroll could be challenging and time-consuming as well. Also, in case, if you fail or don’t keep pace with the ever-changing taxation regulations, you will have to pay for penalties and fines.
Do you know -40% of small to mid-sized businesses incur IRS penalties related to incorrect payroll filings? The average penalty is $845. In many cases, small business owners often try to do payroll in-house for cost consumption. However, tax form errors, late tax payments, late payroll processing, incorrect employee details, or improper employee time tracking can easily damage the small firm.
Spare yourself from the constant suffering of digging through endless employee rotas. Stop spending most of your time with spreadsheets and staring at numbers. Let professionals squiggle from number to number. So, don’t panic. Start delegating your task by outsourcing payroll to a trusted company.
What is the role of an outsourced payroll company?
Payroll management services refers to delegating your administrative tasks and responsibilities to an experienced subject matter expert for overall payroll management.
Such a company is responsible for legitimately abiding by the rules and complying with the latest taxation tasks. This will not only save you time but also minimizes the chances of errors and mistakes in payroll tracking.
Let’s discuss how hiring a payroll partner can ease your business growth and enhance productivity in your work.
Top 9 Reasons to hire an Outsourced Payroll Company:
1. They Have Access to Expertise
Outsourcing payroll gives you access to professionals who’ve studied and researched a lot about government rules & regulations. They have detailed knowledge of tax obligations, tracking and fixing errors, and verification of data before they pose bigger problems.
Some of their areas of expertise are:
- Computation and timely submission of quarterly and annual payroll taxes.
- Issuing checks or depositing funds directly to employees.
- Filing legitimate taxation reports.
- Maintaining and verifying the records of pay data.
- Tracking employee benefits, and eligibility dates and processing enrolment of benefits.
2. Boost security
Payroll processing is quite complex and highly detailed. It involves constant monitoring and scrutinizing due to inherent risks. Also, theft, loss, or misinterpretation of personal information can cost you a fortune.
So if you do not maintain a strict security system, you are bound to face heavy losses. Don’t take chances on data storage and data protection practices. Instead, hire professionals for payroll management services.
Experts stay abreast with the latest security systems and help you maintain accuracy and privacy over the same.
3. Avoid tech upgrade costs
Installing, integrating, and initiating with the payroll software could be an expense to you. Apart from the cost of installation, it also demands additional costs due to changes in legislation. And, to pace with the latest government regulation, you’ll have to either upgrade or switch the services.
Also, you need a technologically sound team to resolve the update mystery and upgrade the licensing as and when required.
So, when you delegate to an outsource Payroll Company you don’t have to look further. They will look after the licensing, software updates, and relevant maintenance.
4. HR management as part of the package
Do you know HR Management is a part of the payroll package?
When you outsource payroll, you don’t have to look after HR Management. Just by adding it into the HRM tool, you can integrate everything right from planning a leave to evaluating performance appraisal.
Now, you don’t have to separately look after HR management as everything will be handled by your payroll partner.
5. Maintaining Business Focus
Do you know – 40% of small business owners say bookkeeping and taxes are the worst part of owning a business?
When you start outsourcing your payroll functions, you can significantly focus on a few more productive activities. You can invest your time into hiring the right fit for the right vacancy to multifold your business drastically.
This even lets your team concentrate on formulating competitive strategies for the upcoming financial year to stand out in the market.
6. Streamlines the Process
When you handle payroll internally, it can be overwhelming and stressful at par. But when you outsource, it streamlines the process at the helm.
A professionally laid Payroll Company starts with planning so nothing is missed. They often incorporate result-driven tools and software to eliminate the paperwork and keep everything in place. This, in turn, strengthens your business activities and improves accuracy resulting in ultimate employee satisfaction.
7. Round-the-clock availability
When you manage your payroll in-house, there’s always a chance that your employee may take leave. This may keep the routine enrolment tasks at bay.
However, your outsourcing payroll partner won’t abandon you. He will be available as per the defined time slots, boosting your payroll management’s reliability. So when you hire professionals, you do not have to worry about employee availability.
8. Quick Turn Around
When you outsource your business’s payroll, you can expect a quick turnaround. Professionals often work with a dedicated team who are well versed and robust in their field. They are smart with information processing, hardly make errors, and work the extra mile to attain client satisfaction at their best.
9. Payroll Compliance
You can count in-house payroll compliance as beneficial only when you’re a forerunner with government rules and regulations.
According to reports, “The IRS estimates that over 40 percent of small businesses in the United States pay penalties of over $800 per year … the result of late or incorrect filing and payments.”
Small businesses often struggle to keep themselves updated with the latest payroll compliances. You can always hire professionals who will take care of overall payroll reforms and update you with changes in tax rates.
At Relig Solutions, we are providing a suite of Payroll Management services. Give us a call now to set your records straight and streamline your business significantly. Get in touch today!