According to the IRS, 33% of employers make payroll errors. It costs businesses billions of dollars annually. As a small business owner, you want to avoid these mistakes and the needless costs that come with them. One effective way of avoiding these costs is by outsourcing payroll.
When you decide to let the experts handle your company’s payroll, you can enjoy these benefits.
Reduce Operating Costs
The costs of managing your payroll process can quickly add up. It shouldn’t cost a fortune to pay your employees. There is the cost of checks, software, regulation monitoring, and the time calculating pay.
Estimate your payroll costs and compare them to the cost of outsourcing. You will find that outsourcing can save you money in the long run.
When you work with a payroll expert, such as Freedom Tax Accounting firpta, you gain valuable expertise from the experts. You are the expert in your core business activities and they are the expert in theirs, which is payroll. It’s their job to monitor payroll laws, new forms, regulations, and withholding rates.
By letting the experts manage your payroll, you can focus on your business. They can inform you of changes that may influence your company so that you can make smart business decisions.
Reduce And Avoid Penalties
We started off this article by telling you that 33% of businesses make payroll errors. This leads to costly penalties. This is money that reduces your profits and is completely unnecessary.
Outsourcing your payroll has an expert handling your payroll. They are knowledgeable on the applicable laws and regulations, ensuring errors are a minimum. Applicable laws could be on a state and federal level.
- Federal income taxes
- State income taxes
- Local income taxes
- Social Security
- Medicare taxes
- Federal unemployment taxes
- State unemployment taxes
As a business owner, you need to think about data security for your employees. There is the risk of theft, scams, and hacks. Protecting employee personal information helps prevent identity theft.
Payroll providers can provide monthly scans, antivirus software, and encryption of sensitive data. This provides a greater level of protection beyond what your business has in place.
Free Up Staff
When you outsource payroll, you free up someone on your team to do other tasks. Overwhelmed team members that wear multiple hats can easily miss things. If you notice that your payroll person is struggling to keep up, then it’s time to outsource payroll.
You can then reduce the stress level of the in-house person and improve the morale of your team. It could also free up time for your team to do new tasks, furthering their experience and knowledge base.
Consider Outsourcing Payroll
If you’re ready to enjoy these benefits, then it’s time to consider outsourcing payroll. This can reduce your overhead, increase your security, and free up staff for other tasks. You can focus on the growth of your business and not on changing payroll regulations.
Check out our informative articles to help you improve your business operations for payroll and beyond.