For many employers, the idea of outsourcing payroll is a touchy subject. Can you really trust another company with your employee's sensitive information? Won't it just end up costing you more money anyway? In truth, it may be more efficient for you to outsource your payroll administration. Now the problem is, how do you know if it's a good idea for your business to make the switch? Well, there are a few common signs that could mean it's time to outsource.
1. Your Employees Are Complaining
When the office is buzzing with complaints about late paychecks and being over or underpaid it's a clear sign that your payroll administration needs some streamlining. The job market is hyper competitive these days, and if an employee starts getting late checks, they may decide to check out of your company. A third-party payroll vendor will have a high level of expertise leading to fewer mistakes, happier employees, and increased business efficiency.
2. You're Expanding Into New Markets
Expanding into a new market brings on many new challenges, including new tax laws and regulations. Getting up to speed on all the new rules and regulations takes time and the increased workload can be taxing on your payroll administration team, potentially leading to more slip-ups and increased turnover. This can become a feedback loop; payroll mistakes lead to dissatisfied employees which lead to more work for your payroll team. A good third-party payroll provider will stay up to date on all current regulations ensuring a smooth transition into new markets.
3. Payroll Management Is Eating up Your Budget
If you're looking at your company's finances and see payroll administration taking up more and more of the budget, it may be time to look into other options such as outsourcing. Although it may seem less efficient to hand payroll over to a third party, research shows that businesses who perform payroll administration and related functions in-house end up spending on average 20% more than businesses who choose to outsource. If your budget is tight, you could surely benefit from applying that 20% into other areas.
If you do choose to outsource payroll, make sure you pick the right platform for your needs. Outsourcing payroll is not a one-size-fits-all solution, and some payroll administration platforms can end up costing you even more in the long run. A good payroll platform will have the features that you need with no unnecessary extras. That's why it's important to choose a provider that can tailor their services to your business instead of trying to sell you a one-size-fits-all package.
At Summerlin-Roberts we provide a variety of services including payroll services tailored to your unique organizational needs. Contact us today to learn how we can provide you with effective solutions for your payroll problems.