For most businesses, payroll processing is a time-consuming and cumbersome task. Smaller organizations may not have a full-time staff member dedicated to the job, requiring someone to shoulder the burden along with their usual duties. And, for larger companies, the sheer volume of information that has to be managed can be challenging by design.
Luckily, payroll processing outsourcing has the ability to alleviate many of the burdens associated with handling the task in-house, including lowering costs while reducing the overall level of risk. If you are considering outsourcing your payroll processes, here’s what you need to know.
Often, partnering with a third-party payroll processor can result in significant cost savings, particularly when compared to the cost of hiring a person to manage the tasks. When you hire a payroll professional, their salary, benefits, unemployment insurance, and all other associated costs impact your bottom line, and they can add up quickly.
If you choose to outsource your payroll, you’ll typically spend significantly less than you would if you maintained a permanent staff member.
Even if you have another person dedicate some of their time to payroll processing, meaning it isn’t their full-time role, you can still see cost reductions by outsourcing. Often, when you break down the amount of time the person must use to complete the work, the amount of their salary that is associated with the duties often exceeds what a third-party partnership would cost. Plus, by outsourcing, your employee can concentrate on their other work, which may have a positive impact on the bottom line.
Unless you have a dedicated payroll professional with the proper training and skills, it is possible your company is making mistakes when processing payroll and those can be costly.
Late or incorrect filings can generate large fines, and errors in employee pay can lead to frustrated workers, harming their level of productivity.
Mistakes can also lead to other difficult situations, like audit and penalties. Plus, keeping a payroll professional fully trained based on the latest changes to government and tax regulations can be challenging to manage.
A third-party payroll processor is typically less likely to make an error that your in-house employees. Additionally, many automatically include additional services, such as assistance during an audit, in their offerings. A reputable outsourced provider also has the staff and training necessary to ensure that your payroll and filings are always managed on time, eliminating the penalties and drop in morale that can occur when things are late.
Ultimately, by outsourcing your payroll, you get access to a team of experts focused solely on the processing of payroll. Not only will this increase overall organizational efficiency, but it can also reduce risk, lower cost, and eliminate other headaches commonly attached to handling things in-house.
If you are interested in learning more about outsourcing payroll processing, the team at Workspend has the expertise you need to succeed. Contact us to speak with one of our knowledgeable staff members today and see how our services can benefit you.