For small business owners, avoiding payroll errors can be a struggle – roster changes, clerical errors, and payroll laws happen all the time. If you don’t have a dedicated financial team, your in-house payroll may be handled by someone with little-to-no expertise.
This is why payroll outsourcing for small businesses can be a relief for you and your team. It can save time, and money, and reduce stress, which will let you focus on your product and services. In this piece, we’ll cover:
Reading this guide to outsourced payroll can be the first step to unlocking the next level for your small business.
Payroll outsourcing is when a company delegates all or a portion of its payroll process to a third party. Professional payroll services offer a wide array of services, including tax reporting, compliance, data security, and accounting help. It is important that when choosing a third-party payroll provider, you consider the needs of your business in the present but also at scale for the future.
While it can seem overwhelming to hand over the control of such an integral and personal process, it can be one of the most freeing moves for a small business. Employee payroll service can be one of the most stressful and time-consuming in-house elements for a small business, and outsourcing can be a great boon to productivity.
Making the switch to a professional payroll service is one of the best ways to accelerate growth. While the process can differ from provider to provider, the typical payroll outsourcing startup needs include:
Once you have set up the baseline information for your payroll to be handled, you will need to establish methods for each critical payroll function – both on a pay period basis along with quarterly and yearly payroll needs. Make sure to have a clear discussion about how your provider will handle this when setting up outsourced payroll services for your small business.
When you hire a professional payroll company, the goal should be to relieve you and your team of as many payroll systems as possible. There will still be a need for input, internal auditing, and information-gathering, but a small business should aim to outsource these payroll functions:
These are some of the main functions of outsourcing your small business’s payroll. A high-quality payroll company near you will know the local and federal payroll laws that impact your company most and can help you turn payroll from a headache into a seamless part of your organization.
Outsourcing your payroll can be one of the most financially positive moves your business will ever make. This is because there are multiple ways to achieve significant savings in the short term and long-term and add significant layers of protection to the money you make.
Often, an employee who has minimal professional financial training takes care of a company’s payroll and likely has multiple other roles they need to fulfill as well. When you outsource payroll, you have a team of trained experts deal with each step of payroll while freeing up your team’s time to focus on your products and services.
Additionally, the rate you pay for each element of outsourced payroll services will not increase by much with each employee you add to your payroll. However, most forms of in-house payroll take extra time for each employee you add.
Finally, when you outsource to a professional payroll provider, they will be meticulous and typically create fewer errors surrounding the payroll process. If there are errors, they will also better correct them promptly, saving you time and money.
Outsourced payroll pricing will vary by provider and your small business needs. For the most part, the packages will depend on how many employees you have and what services you are outsourcing.
When discussing possible third-party payroll services, make sure you give an accurate description of your company setup, payroll needs, and your in-house payroll pain points. A payroll technician can do a lot to troubleshoot your operations and make them extremely cost-effective for the long term.
At Paytech, we know the stresses that come with managing payroll. We also understand how daunting it might seem to switch from in-house payroll to outsourced services.
Luckily, that’s our specialty.
We help companies save money, reduce stress, and increase employee happiness by providing the best outsourced payroll solutions in Arizona. We can help you make the switch and be running a seamless payroll process in no time at all. If you are interested in taking your small business to the next level, please reach out to us today.