Outsourcing frees up the business owner, the HR team and the accounting personnel and works on another task for the development of the business. Though there are various ways to manage payroll accounting internally – such as manual bookkeeping, using payroll software, some businesses prefer the option of the idea of outsourcing work to payroll professionals. Listed below are some of the reason why it is best to outsource the payroll to payroll service professional –
Payroll service includes intricate working process and involves various calculations – from new hires, terminations, benefit deduction and much more. It also includes the calculations based on the change in federal and state law and regulations – which is all a complicated task for any person.
It is a time-consuming process which takes away the precious labour hours in preparing the pay check. Hence, outsourcing the payroll accounting to the professional firm helps in unburdening the employees from the task, put them at other productivity requirement task and takes away your worries.
It helps the employee to use the time for core functions that are important for the business.
Strategic Resource Management
It is one of the major reasons why many business owners prefer to outsource the task. It gives them a competitive edge for better productivity task. Payroll is not a one-time activity that can be set and processed on a regular pattern.
Avoid Cost Reduction
A small business owner with limited resources and a small workforce must consider outsourcing the payroll function to the reputed payroll service provider. This is because the expenditure of doing the payroll by the in-house team requires more money than outsourcing it. The business staffs should be involved in various sub-processes of payroll functions such as – payroll calculation, signing and distribution of pay checks, calculations of the taxes and returns, new hire reporting termination, training and support team and much more. Instead of hiring the staffs for doing all these tasks, it is recommended to outsource the service to the payroll service provider at a cheaper rate.
Along with the additional staff required for the process, the team will also need additional infrastructure – office space, utilities, software, furniture and much more. Outsourcing helps in avoiding all the maintenance and infrastructure cost with ease.
Outsourcing payroll also eliminates the possibility of incorrect filings that might lead to Internal Revenue Service penalties. Payroll errors are serious as it involves upsetting the employees and red flag-raising due to incorrect or omitted filing details. It can lead to undesirable actions including heavy penaltiesand audit surveys.
Outsourcing payroll services is beneficial to small, medium or large scale businesses. Easy Paye believe in working with the clients to provide the personal and customised payroll service at the best possible cost. We ensure to take time to learn about your business objective and understand the client needs to provide the tailored service.
If you are doing your payroll processing but need a payroll service provider, contact us for a free consultation. Our business clients range from large organisations through to small family run traders and everything in between.