Payroll Outsourcing: Taking Your Small Business to the Next Level
All business owners understand the importance of accurate payroll. It keeps your employees happy and motivated and prevents lawsuits related to unfair compensation. However, it can also be one of the most challenging tasks for many small business owners. That’s why payroll outsourcing has gotten so popular! It simplifies the process of managing and correctly processing payroll on time, every time.
Payroll outsourcing to better your bottom line
You may be thinking to yourself, “I’m doing just fine managing my employee’s paychecks… why should I outsource payroll?” Well, there are several advantages of outsourcing payroll services, but what it all boils down to is that it can improve your bottom line. Yep, you read that correctly. Hiring a payroll company can actually help you be more profitable.
Let’s dive into some of the most common questions business owners have when they first start exploring the process of outsourcing their payroll.
What does outsourcing payroll mean?
Most small businesses start off by managing their payroll in house. Usually, the owner or maybe an office manager fills out the new hire forms, adds up the time punches for hourly employees, calculates withholding for payroll taxes, manages paid time off and absences, and then reports everything to the IRS at the end of the year. Just reading all those tasks is exhausting!
So what does outsourcing payroll mean? Basically, you hire a company to do all this (and usually even more) for your business. They take over all the payroll functions so that you can focus on other important tasks.
Why outsource payroll?
Even basic payroll can be complicated for small business owners. With ever-changing laws at the federal, state and local levels, it’s important for business owners to understand how their payroll process may be affected. This becomes even more important for those with employees in multiple states!
Aside from just complying with the law, businesses must ensure their employees’ paychecks accurately reflect the time they worked, cover their approved paid time off, includes any owed overtime and has the correct amount taken out for payroll taxes. If an employee’s check is not correct, it can result in a drop in morale and a loss of faith in the company. In fact, if it happens regularly, it could become a reason that a good employee leaves your business.
Advantages of outsourcing payroll
There are so many advantages of outsourcing payroll services. You’ll no longer need to worry about which forms you need to fill out for a new hire. Outsourcing payroll also prevents the chance of forgetting to process paychecks a day early to account for a holiday. It will help your business stay on top of changing laws and managing paid time off.
Basically, outsourcing payroll takes the guesswork out of your employees’ paychecks – and that’s something all small business owners can get behind!
How to outsource payroll
Okay, so now you’re convinced that hiring a payroll company is the right move for your business. Now you just need to figure out how to outsource payroll. There are a few things you’ll want to consider when deciding the type of company you want to work with including the kind of services available and, of course, the cost.
Payroll outsourcing services
Many business owners have heard of payroll software, like Quickbooks, and may think this is the way to go. However, one of the main problems with a software system versus a dedicated service provider is the lack of customer service. A software system won’t be able to help answer your questions or address your employees’ concerns.
Outsourcing your payroll to a dedicated company, like Paytech, allows you to have a dedicated account manager who can help guide you on the best practices for your unique set of employees. They can provide insight to help ensure everyone is on the same page on payday.
Payroll outsourcing cost
Another huge consideration for business owners, of course, is the payroll outsourcing cost. You want to find a cost-effective solution that scales with you as your number of employees increases. You’ll also want to keep an eye out for any additional fees that might result from the type of services you need such as an employee time clock or electronic verification of new hire paperwork.
At Paytech, we offer multiple price points depending on the needs of your business. This helps keep the cost of payroll services to a minimum, without sacrificing the quality of service you and your employees receive.
At the end of the day, having payroll done on time and correctly can alleviate frustration, help you retain valuable employees and avoid mistakes that could result in your business owing fees to the government or back pay to your employees. Most business owners agree this is completely worth a small monthly fee.
Leave your payroll processing to the professionals
When it comes to payroll processing, leave it to the professionals. Save time, avoid costly mistakes, and get advice on how to navigate the tricky payroll laws. Paytech is here to help you keep your employees happy and your business protected. Our attention to detail means that you no longer have to worry about correct and timely payroll.