Payroll administration is complicated, even for small businesses with relatively few employees. In fact, an increasing number of businesses are choosing to outsource their payroll, and here are some compelling reasons why.
1. They Can't Keep Up With Complex Regulations
The main reason why many businesses, both large and small, are choosing to outsource payroll is the increasing complexity of government regulations. It's simply not feasible to keep up with all of the changes without a dedicated team, and for the most part, outsourced payroll providers simply have more expertise. Hiring and training a payroll team for your business is time-consuming, costly, and if key members move on from the company all of the knowledge and expertise goes with them. When you outsource payroll, that expertise is yours for as long as you need it.
2. They Are Expanding Into New Markets
With new markets come new tax codes and regulations. Trying to take in and integrate all of the new information while fulfilling your current payroll obligations can be stressful and lead to costly mistakes. Payroll mistakes like employees being under or overpaid can really damage employee morale and that's the last thing you need while trying to expand your operation. When working with an outsourced payroll administration team who is familiar with the area, the hard work of learning local tax codes and regional quirks is already done, reducing the chance for mistakes and allowing you to focus on the rest of the business operations.
3. Their Employees Want To Get Involved
Employees these days are choosing to become more involved at every level of the business, and that includes payroll administration. Your employees likely want the ability to access their payroll information on demand so they can adjust their withholdings or change how they receive deposits. This kind of service can be difficult to provide without a robust payroll platform. Payroll providers are typically the only ones who have the time and ability to develop platforms that meet the needs of the modern workforce.
4. There's Too Much Overhead
Whether you do the work yourself or you hire and maintain an in-house payroll team, there is a lot of overhead involved. When you outsource your payroll, you're typically dealing with a manageable and predictable cost that's easier to work into the budget. Not only is there a greater financial burden there is also a time and resource burden. An outsourced team will work alongside you, allowing you and your employees to allocate your own time in more effective ways.
5. It's More Secure
Everything is connected these days, for better and for worse. Payroll administration involves a lot of sensitive employee information, and if your system isn't following all of the latest security protocols that information is at greater risk of being compromised. When information such as this is stolen or lost, you and your business could be held liable. Dedicated full-service payroll providers will have state-of-the-art systems and built-in redundancy to ensure no data is stolen, tampered with, or lost. In the event that a breach does occur you are less likely to be liable for damages.
At Summerlin-Roberts we work with businesses of all sizes to come up with effective and affordable payroll administration solutions. Contact us today to learn more about how we can help you with your payroll administration.
