Benefits of Outsourcing Payroll
Payroll is complicated and time consuming, and many small businesses have neither the time nor the knowledge required to complete their own payroll. Your company may be focused on its core competencies, providing your services or producing your products, and some administrative functions may not given the attention they need. The following are benefits of outsourcing your Oregon payroll.
Save Time and Money
Payroll takes time. In fact, one study said that up to 39% of companies complete manual payroll, which is time consuming. You have to hire and train these employees, who also must remain on top of changing payroll laws. Your payroll department has to calculate hours worked, payroll and applicable taxes each pay period. Their other duties may include creating accounting reports and reporting new hires.
In addition, if you have a small or medium-sized business, you may not have the cash flow necessary to pay salaries and benefits for in-house payroll specialists, or you may want to reinvest this extra money back into your company. A great way to determine whether you can save money is to calculate the time it would take to complete your payroll each pay period, connvert these hours into their actual cost, and then, compare this cost to local payroll providers.
Prevent Legal Issues
According to the IRS, nearly half of America’s small businesses pay nearly $1,000 per year in late payment and filing error penalties. Payment and filing errors affect your employees as well. The IRS also closely watches the businesses that have recurring penalties. You have to stay abreast of changing payroll and tax laws, and you are held responsible for any errors you make.
Exploit the Expertise of Others
Payroll companies hire experts and train their employees on any new developments in their field. They then adapt your company’s payroll to meet changing laws. They also understand any adjustments that need to be made for new employees and those who are promoted to different positions. They may even provide 401(k) plans to your employees.
If you are trying to grow your business and find that your payroll functions are being ignored, not being completed correctly or are costing your company too much money, consider outsourcing your payroll.