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Payroll is a crucial part of the business, comparable to sales, client service, as well as content marketing. You should not consider it as a two times a month hassle or just a bookkeeping task. Payroll is an incentive for your employees, for all they have offered to the company. Errors and miscalculations on the payroll will mean unmotivated employees and that may have detrimental consequences on your business.
There are numerous of tax codes and regulations that you need to be aware of. Here are a few things you need to consider:
Classification of employees and contractors
Tax deposit and filing deadlines
State unemployment taxes
Garnishments and levies
And these are not the whole picture. Although it is a task that usually small businesses undertake themselves, outsourcing payroll grants many advantages to companies.
1. Time Saving
The more tasks you have to undertake the less control you have over your business. Payroll is a task that requires a lot of attention and can cost a considerable amount of time to your business, which increases as your staff grows. This time could be spent to core tasks of the business, helping it to grow. By outsourcing the payroll you are immediately more in control of other core tasks such as marketing or sales.
2. Reduction of costs
Everyone knows that time in business is directly linked to your revenue. By saving time from payroll you can have direct benefits on
your savings. If you calculate the employee hours, paid time off, sick leave, printing, distributing, generating reports and much more you will see that outsourcing your payroll is a much more cost effective way to deal with the task.
3. Secure your Data
In a busy office environment the loss of data, distortion of data for the gain of some employees or even theft are not a rare thing. Even the software used for payroll may be unsafe considering poor server configuration which causes security flaws. Building your own highly secured environment may end up being extremely costly, so outsourcing the payroll to companies that provide a high level of security is the safest and most cost effective solution to this problem.
4. Regulation compliance
As a business owner you must understand that you are held legally responsible for any irregularities concerning tax regulations. Any mistakes you make may leave you exposed to audits and penalties. Companies that are specialized in payroll services understand laws and regulations more than anyone else, so it is a wise decision to let them handle your legal obligations for you.
5. Additional Services
Firms offering payroll services will typically offer additional services such as contract generation, contractor services access to health benefits, etc. So there is no reason why you would not want to benefit from these additional services that will help your company focus on the growth and success.
The benefits of outsourcing your payroll to professionals are too important to overlook. Any company owner who wants to see his company take an upward course will need to consider what tasks he needs to focus on, in order to meet his goals. Leaving some tasks to real professionals is most of the times the most sound decision.