While payroll may seem like a small part of your overall business operations, the consequences of mismanaging it can be far reaching. That's why more and more businesses are choosing to outsource their payroll.
Outsourcing isn't the right choice for everyone and not all businesses are mismanaging their payroll, however, so let's go over the telltale signs that your payroll is being neglected and discuss whether or not outsourcing is the right solution for your business.
Is Your Payroll Being Mismanaged?
It's actually fairly easy to find out if your payroll is being mismanaged, just take look at the budget. Many businesses are shocked to find out how much a seemingly simple thing like payroll is costing them. Hiring someone on full-time, or even part-time, to handle payroll is obviously not cheap. Even doing it by hand yourself has its costs as it can lead to mistakes, and payroll mistakes usually come with hefty financial penalties.
Listening to your employees is another thing you can do to gauge the efficiency of your payroll process. Some of the most common payroll mistakes are employee-facing things like under or overpayment on their paycheck or late paychecks so if you make a mistake there it is immediately obvious to your employee. Although it may seem like these mistakes are easy enough to correct when they happen, employees will quickly tire of having to deal with the instability.
Many Businesses Are Choosing To Outsource
To deal with the dangers of mismanaged payroll more employers are choosing to outsource. For business who don't have the resources to do things properly in house, outsourcing payroll administration consistently leads to a reduction in costs and a less error-prone payroll process that will leave employees more satisfied.
That said, outsourcing payroll isn't right for every business and next we'll talk about some reasons why a business might want to keep their payroll in-house.
Is Outsourcing Right For Your Business?
For most businesses outsourcing payroll is a no-brainer but there are a few exceptions. Businesses that are sufficiently large or businesses with very complicated, industry specific payroll systems generally benefit more from doing their payroll in-house. Businesses with collective bargaining agreements may also want to keep their payroll in-house.
If you don't fall into any of these categories, you may benefit from outsourcing your payroll administration. Outsourcing your payroll brings with it a host of advantages including:
- Increased productivity
- Cost reductions
- Less payroll errors
- Increased security
If any of the payroll issues here sound familiar to you at all you should seriously consider getting in touch with a payroll service provider to learn more about outsourcing your payroll administration.
Summerlin-Roberts has experience supporting businesses of all sizes with a variety of payroll administration services. We partner with your organization and develop a tailored plan to improve your current payroll system and eliminate costly mistakes. Please contact us today at Summerlin-Roberts to learn more about our payroll services.