Is it Time For a Payroll Management Service?
It is a rare business owner or HR manager that enjoys the work of payroll management. And while it is an essential and vital component of your business operations, at some point the question arises whether it is time to outsource your payroll operations.
But from a cost-effectiveness perspective, when does it make sense to use a payroll management service?
Here are some of the major signs that it's time to outsource your payroll management process:
1. There are too many mistakes. Payroll mistakes are costly. In addition, you run the risk of creating problems with employees and, possibly, government agencies. A good payroll services provider is far less likely to make serious errors. And in the unlikely event that it happens you able to receive financial restitution from the provider. Peace of mind is one of the greatest benefits of outsourcing your payroll process.
2. It takes too much time. Professional payroll management services specialize in processing complex payroll systems. And because this is what they do best, they also accomplish this much more quickly and efficiently than your own staff is able to. Since your payroll staff probably has multiple roles to fill in your business, removing the burden of constantly processing your payroll will increase their productive time.
3. Staffing costs keep going up. While large corporations might be able to absorb the cost of fully staffed payroll departments this is not the case for smaller businesses. For example, if your business has, say, less than 20 employees, it may well be far more cost-effective to outsource your payroll operations. And when you include the cost of printing and distributing checks, creating tax documents, and related tasks associated with your payroll process, the savings can be substantial.
4. Compliance is becoming overwhelming. A good payroll services provider is up to date and knowledgeable on employee and payroll compliance. They must stay abreast of all new tax laws and regulatory mandates on the federal, state and local levels. The burden on your own staff to maintain this level of compliance knowledge only increases with each legislative session.
5. Constantly having to upgrade payroll software. Business owners are always under the gun to acquire and maintain the latest version of their payroll software and ensure that they have the most recent tax information. Outdated tax and payroll information can be a nightmare for a business requiring regular updates or upgrades. Outsourcing your payroll management process eliminates the need for these expenditures.
It's time for a change
Take some time to assess the state of your own payroll management capabilities. If these signs are present and you're finding that your payroll process has become a drain on your company's time and resources, then it's time for a change!