How much time do you spend each pay period entering payroll information and ensuring that your employees get paid?
For many small-business owners, the time spent each week, month, or quarter handling payroll function is an exercise in frustration.
Even if you have dedicated accounting or human resources professionals to handle payroll functions, their time may be better served elsewhere. If you’ve ever wondered why you should consider outsourcing payroll, the following four critical benefits gained from outsourcing payroll functions might just convince you to give a Professional Employer Organization (PEO) a call to begin the outsourcing process.
Benefits Derived from Outsourcing Payroll
Outsourcing the payroll functions of your accounting department just makes good sense. Here’s why.
- Saves you time: How many hours do you spend on payroll? By outsourcing payroll functions to a PEO, you’ll gain back hours, if not days of time you used to spend administering payroll and completing forms. Time is one resource you can’t buy more of, so anytime you can regain hours to focus on your business, you’re already coming out ahead.
- Reduces or eliminates mistakes: Firms, such as professional employer organizations (PEOs), are experts in dealing with payroll administration, taxes, and forms. Because they handle so many forms for businesses nationwide, your PEO keeps abreast of the latest developments, changes, and updates from various offices including Social Security and Medicaid, as well as federal and state employment offices. This expert insight can help reduce or eliminate costly mistakes that small-business owners often make when it comes to administering payroll. For example, many business owners end up paying penalties or late fees for missing or incorrect filings. Working with a professional can save you time, money, and headaches.
- Offers more benefits: A PEO can easily and quickly set up direct deposit for your employees and make sure that any questions, problems, or concerns are handled promptly. This additional benefit appeals to employees and makes payroll day a lot easier for all.
- Retains important information: Small-business owners are especially vulnerable to problems when key employees leave the firm. If your payroll administrator became ill and had to take an extended leave, or quit and left abruptly, what would you do? Do you have systems in place, information logged in a resource manual and the knowledge, skills and experience to take over for your payroll expert should he or she be absent for an extended period of time? When you work with a PEO, the knowledge of how your payroll is administered is centralized outside of your company so that no matter who you hire or fire, the information remains safe. Many small-business owners find this an appealing benefit, especially if they’ve encountered problems in the past.
More Benefits of Working with PEOs
There are many more benefits obtained from working with a PEO. Small businesses across the nation are discovering there’s an easier, better way to offer benefits, administer payroll and handle taxes and insurance, not to mention other human resources functions, by working with a firm like ours.
Let’s move your company forward and give you back some hours in your work week. Give us a call or complete the following form to find out how we can help you relieve payroll stress and headaches.
1 thought on “Four Critical Benefits Gained from Outsourcing Payroll”
Pingback: When would you gross up severance pay? | Lang Allan & Company CPA PC
Comments are closed.