Growing companies always face the decision to outsource some business functions because at some point the cost of keeping up can be a more costly option.
The larger your company becomes, the more time-consuming and complex your payroll functions become. And the never-ending parade of federal and state regulations and changes doesn't help.
Like other functions in a business, payroll management can become unwieldy and costly. Yet, too many businesses choose to find internal solutions.
Too many owners and management teams address their growing payroll processing burden by simply adding hours, hiring more lower-level staff, or spending money on new payroll management software and training. While this might suffice for a time, there is usually a point of diminishing returns, however.
And that's when payroll management mistakes begin to occur with more frequency. Errors and omissions in your payroll process can be dangerously expensive. A lack of payroll compliance has it's own, often costly, consequences, as well.
Between the IRS and the state labor boards and commissions, the fines and additional taxes and fees can be debilitating for a business, if not devastating. And the effects of having an overworked, understaffed payroll department are often exponential.
In addition to the costs of fixing errors and possible fines, etc. there is also the impact on employee morale and the damage to your company's integrity.
10 Common Payroll Management Mistakes
There are a number of errors and oversights that can occur throughout the payroll and HR processes. We have narrowed these down to ten of the most common and illustrated them in a "top ten" list for quick reference.
If you recognize three or more of these happening regularly in your company,It's a good sign that you need to consider a viable option for your payroll process.
If you are experiencing any number of these typical mistakes you can bet it's a good sign that your team may be in need of additional staff and resources. But it could also be a good time to consider options for managing your business by outsourcing payroll.
Not every business can or should outsource all of their HR functions. However, even smaller companies can benefit for the cost-savings of outsourcing one or two major functions. And probably the most commonly outsourced business function is payroll.
You might already find that you are dealing with these issues because insufficient resources:
Too many mistakes are made
Payroll mistakes are costly. 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.
Takes too much time
Professional payroll management services specialize in processing complex payroll systems. 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.
Staffing costs keep increasing
While large corporations might be able to absorb the cost of fully staffed payroll departments this is not the case for smaller businesses. 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.
Compliance is difficult to maintain
A good payroll services provider is up to date and knowledgeable 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.
Constantly upgrading payroll software
Outdated software 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.
When You Know It's Time to Outsource
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 you know it's time to outsource!
Get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.