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The Benefits of Outsourcing Payroll for Medical Practices


One of your biggest challenges in running a business will always be dealing with payroll. It’s a necessary expense, but it’s also one that you can control. One great way to make sure you’re able to get all you need out of payroll processing while still having time to run your business, is to outsource the processing. While in-house payroll can be popular in small practices, the truth is that outsourcing is the best way to deal with these tasks. As your medical practice grows, you’ll want to consider outsourcing payroll to experienced professionals in order to keep up with all of your payroll needs.

Outsourcing payroll: Why it’s important

While you might be a bit reticent to think about sending something as important as payroll outside of your office, it’s something you should consider. Payroll outsourcing really does help your business to run more efficiently, especially if you want to redirect your hours away from administrative tasks and towards the onestasks that actually make you money. Below are just a few of the ways that letting another company do your payroll can end up helping your business prosper.


Saving time

More than anything, working with a payroll processing company helps you to save time. While you might think of payroll as something that takes you an hour or two while your company is small, the truth is that payroll can be an extremely time-intensive experience even for medium-sized companies. If you can reduce the amount of time that’s spent worrying about getting payroll done, you’ll get the chance to redirect your efforts towards other aspects of your business. In many ways, outside payroll processing is a necessity if you really want time for your business to grow.


Remember, you’re not just dealing with calculating employee pay when you do payroll. You’re also processing payments, signing checks, and even mailing them out to employees. You will spend even more time dealing with setting up new employees, and you might see the hours start adding up if there is ever a mistake. These are all things that the outside processor can help with, which will free you up to spend more time concentrating on the medical aspects of your business. Time is one thing that you can never get back, so use payroll outsourcing to guarantee that you keep as much of it as you can.

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Saving money

Since having your payroll processing outsourced saves you time, it also saves you money. The cost of outsourced payroll is almost always less than the cost of having a full-time employee working on processing., and the fact that you won’t have   Also, not having to deal with any kind of sick pay or benefits when paying for an outsourced organization can save you a significant amount of money every year. You can easily afford to hire another individual for a vital part of your business when you don’t have to worry about paying a salary for payroll processing, and you’ll still get the same kind of great professional help you need.


Salary isn’t the only kind of money you’ll save. There are dozens of little overhead costs that outsourcing will help you to avoid. Payroll overhead isn’t something that you might think of on a regular basis, but it’s a real cost that you should be able to avoid with a little extra help. If you are willing to let someone else handle this type of work, you’ll get more money back in your company’s accounts, and a chance to better control your own funds.

outsourcing payroll

Getting expert help

Working with professionals also gives you access to their expertise when it comes to processing payroll. At a basic level, this helps you to reduce the number of mistakes that are made on paychecks when it comes to taking out taxes or correctly calculating overtime. Having someone who only works on payroll running the system allows this person to catch the things that you normally wouldn’t see, and to make sure that all mistakes are taken care of in a timely and professional manner without having to involve anyone in your office. It’s a great benefit that really helps to remove some of the stress from running a business.


Payroll professionals don’t just deal with the basics, though. These individuals know all of the various state and federal regulations that can impact how your employees are paid and are able to jump through the legal hoops necessary to keep your business running without incurring any kind of monetary penalties. Unless you’ve spent a significant amount of time studying business regulations and the tax code, it’s unlikely that you’d be able to process payroll with the same general level of efficacy as a company that solely concentrates on this type of work.

outsourcing payroll

Preserving focus

Perhaps the most important benefit of outsourcing your payroll, though, is that it gives you the freedom to focus on your core business. Everything above comes together to allow you to spend less time and energy wondering if payroll is being done correctly. This in turn allows you to put your focus back where it belongs, allowing you to run a successful business that manages to pay all of its employees in a timeline manner.

outsourcing payroll

Don’t overestimate the freedom that having payroll efficiency can bring to your business. Just being able to know that no one will have to check up front to see if the checks are finally done will be a huge weight off of everyone’s shoulders. Once you can stop worrying about this accounting function and get back to the medical business, you’ll notice that many other things are able to more easily fall in place. Outsource your payroll so that all of your energy can be put towards the parts of your business about which you care the most.

There’s no shame in outsourcing your payroll. In fact, doing so is a smart business move that will help improve not only how your practice operates, but one that will help you to maximize its profits. Don’t trap yourself by thinking that you have to do everything in house. If you are willing to let professionals help you, you’ll have a much more efficient practice. If you are thinking about payroll outsourcing or if you just have questions about how you can improve how your business handles payroll, don’t wait – contact PayTech to learn more today.