As a business grows, new challenges emerge and these demand smart and innovative solutions. Many small businesses fall by the wayside because they don’t adapt fast enough to embrace new ways of doing things. One of the most important areas of a business operation that requires such changes is the payroll processing. Payroll is more than just paying employees every month. This crucial business process takes a huge chunk of business revenues and if not done properly; it can lead to business’s losses and IRS penalties. Trying to conduct payroll in-house can lead to the collapse of a great idea and this makes Outsourced Payroll Services the smartest move for businesses seeking to save money and grow.
To appreciate the crucial role payroll plays in your business, consider that your employees are at the core of all operations. Without a smooth payroll processing, you will have problems rewarding and compensating your employees which will, in turn, affect motivation in your workforce. Mistakes in pay calculations will lead to a dissatisfied workforce. To put this in perspective, consider 82 million U.S. employees (54% of the American workforce) suffer payroll problems.
Worse still, the IRS penalizes small businesses billions of dollars for payroll errors. It is easy for the complex US tax codes and convoluted payroll compliance rules to overwhelm your in-house payroll processes leading to debilitating penalties.
Now, there’s a solution to all these problems and it is in outsourcing online payroll services. If you have been looking for the best way to cut operational costs and save your business in this turbulent economic environment, it is time to bring in professional payroll services.
It is understandable that you want to know how outsourcing payroll in your business will save you money. Take a look:
For the best payroll solutions, you need costly software and you have to pay for licensing to keep using these tools. You will also need special hardware to use some of these tools and your team has to undergo intense training to start using the new technology. When you outsource all your payroll needs to an online company, you don’t need to pay for the hardware or the technology. This saves your business much-needed cash.
Millions of dollars are lost every year by businesses in their payroll calculations. As a business starts, it is easy to monitor salaries but as your workforce grows, you will have a hard time doing this. In such situations, it is possible to lose money. You can overcome this problem by outsourcing everything to do with the payroll to the professionals. By working with an external team of payroll experts, you will curb losses and save money.
The best thing about outsourcing payroll to an external firm is that you get a comprehensive package of payroll solutions at low cost. Doing payroll in-house requires a team of accountants each handling specific processes. All these professionals have to be paid and they will also enjoy other benefits.
A payroll service will offer multiple solutions including Paycheck and payroll sheet creation, tax preparation, state and federal taxes and check creation, state and federal returns, Annual, quarterly and monthly returns, Payroll processing and services among others.
These professionals offer custom financial services tailored to meet your unique needs. By collaborating with a payroll service provider, you will save money for your business and boost growth.
Online payroll services work remotely and monitor your process in real-time. You don’t have to provide room on your business premises and this saves you a lot of money. Other overheads costs that you will reduce include power usage and other expenses that come with more employees in your workforce.
Over time, your in-house team grows complacent and it is easy for errors to occur in tax filing other payroll compliance areas. This can lead to hefty penalties which can ruin your business. Outsourced personnel, on the other hand, will keep monitoring your payroll keenly to avoid such errors and this saves you a lot of money.
There is no doubt that outsourced payroll services are the game changer for a growing business. With rising costs of business operations, outsourcing your payroll gives you an opportunity to save money that would have been lost through inaccurate processes, fines, overhead costs, hardware, and software expenses.