16 Aug 6 Advantages to Outsourcing Payroll
Let’s go over the top 6 advantages to outsourcing payroll:
1. Boost Growth by 7 to 9 Percent
Outsourcing your payroll services can save you time and money. Outsourced business management services, specifically a PEO model have been proven to boost growth by 7 to 9 percent and provide many more important benefits for small and medium-sized businesses that need administrative assistance.
2. Free up Staff Time
Using outsourced payroll services, business owners and their employees can free up time, allowing them to perform more profitable activities. In small companies, employees can reduce their workload and focus on profit-making tasks instead of administrative duties. Large companies can benefit by allowing their HR staff to focus on employee and professional development and relations.
3. Reduce your Costs
It may cost you less to outsource your payroll processing services than it does to do the work in-house. Studies show that a typical small business with ten employees will spend $2600 per year on direct labor costs associated with payroll. The amount saved can go a long way for small business owners.
4. Avoid Penalties
The IRS says that 40 percent of small businesses pay almost $1000 a year for late or incorrect payroll filing and payments. Using a professional payroll service can help you pay correctly, on time and avoid unnecessary fees. Outsourced payroll services help prevent you from losing money when you don’t have the time to properly handle these critical tasks.
5. Convenient Employee Payroll Deposits
Payroll service for small businesses make it easy to give your employees the convenience of direct deposit and eliminates the time-consuming process of producing and reconciling paper checks. Pay card are also a convenient method of payroll deposit available to businesses and their employees.
6. Keep up to Date
Using a payroll service assures you that your payroll is being calculated with the most up-to-date tax tables; you don’t have to worry about incorrect payments and potential tax penalties. Partnering with trusted payroll service providers will eliminate the need to keep up with ever-changing rates, regulations and forms. Many times these service providers also offer convenient time-tracking and record-keeping tools available at your employees fingertips.
There are many more to add to this list, but we just focused on the top 6 advantages of outsourcing payroll. Want to know more or try it out for yourself? Give us a call and we can go over the best options for your business.