About 40% of American small businesses spend 80 hours or more per year dealing with federal tax responsibilities. Virtually all those efforts are related to payroll.
Over half of small businesses say that the administrative burdens are one of the most pressing issues they face. It takes a lot of time to process payroll, which is why it makes sense to outsource those requirements to a trusted vendor.
When you need any of the following advantages, the value of this relationship becomes greater than the cost to hire a service provider.
What Are the Advantages of Outsourcing Payroll?
1. Save Time
Payroll can be complex, even if you only have a handful of employees. You need to tally hours, calculate benefits, and more. Outsourcing this work can let you focus more on what you do best.
2. Added Expertise
Payroll vendors are specialists that know the current rules and regulations regarding tax withholding and more. You’re less likely to experience an accounting error when they’re on the job.
3. Cost Reduction
Although you pay someone to keep your records, the overall expense is typically lower than if you did the work internally. Spending a few dollars per employee compared to the salaries and benefits for full-time staff is often worth the investment.
4. Risk Reduction
The best payroll vendors take many of the financial documentation responsibilities off your shoulders. They deliver the expertise needed to help your business avoid accidentally violating the law.
5. More Freedom
Without the constant payroll pressure on your shoulders, you can keep everyone working in areas that reflect their strength.
People want to know they’ll get paid accurately and on time. Outsourcing payroll duties to an experienced vendor can accomplish that outcome. Carefully research options, and make sure that you are not signing up for a scam.