Payroll can be a complex process for businesses. Every business owner recognizes the pressures involved with payroll processing, payroll tax filings, tracking paid time off, and completing and distributing W-2s each year. Over half of companies today are outsourcing their payroll processing to handle these tasks and keep their business on top of a quickly evolving workforce. In addition to a minimized workload, here are four benefits a company will receive when outsourcing payroll.
1. Increased Organization
Proper payroll organization begins with effective systems and processes for managing tasks, responsibilities, and deadlines. This can include software tools for managing various types of information, detailed filing systems—electronic and physical, avoiding clutter, and disposing of out-of-date items. Fulfilling the payroll requirements for Paycheck Protection Program loans also requires a great deal of organization and additional documentation.
For these reasons, handling payroll in-house can be more expensive than outsourcing. A payroll provider has the experience and tools you need to organize all your payroll requirements and potentially lower your costs.
2. Clear Documentation
Having a solid understanding of your payroll process is critical. Clear documentation is important in case there are any questions or concerns from employees or stakeholders. When things change or something goes wrong, having a streamlined and documented process will help maintain stability and prepare you in the event of an audit. Wondering where to start or what should be included in your payroll process? A payroll provider can help you eliminate any guesswork of developing an effective payroll process with clear documentation.
3. Minimized Liability
With payroll, the smallest details can make the biggest difference. Failing to pay close attention to every detail can greatly impact your staff and payroll management. Payroll providers know the ins and outs of every aspect of the job. They can help you minimize liability arising from overtime pay requirements, payroll taxes, and quarterly and annual tax forms. From proper classification of employees to tax regulations and labor laws, outsourcing your payroll ensures you don’t miss important details that keep you in compliance and penalty-free.
4. Improved Scalability
If you are wondering how you will keep up with payroll responsibilities as your business grows, consider outsourcing your payroll. Shifting your payroll responsibilities to a provider can improve your organization’s ability to scale without having to hire additional people to handle payroll. According to the American Payroll Association, payroll is one of the most regulated functions in an organization. Utilizing a payroll provider will give you access to a full team of payroll specialists who keep up with state and local regulations as you expand. Your payroll will be completed on time and with accuracy, efficiency, and effectiveness, allowing you to grow your business.
LBMC Employment Partners is dedicated to helping employers maintain the highest of standards with payroll through a variety of payroll solutions such as accurate and timely payroll processing and payroll tax services. With a designated payroll specialist, you and your employees will have peace of mind. We stay on top of legislative changes and the complexities of managing remote workers so that you don’t have to. Contact us today to discuss our payroll and payroll tax solutions that can help make your business even better!
See what our clients are saying:
“It has been great to partner with a team of people that have expertise in various fields of payroll, HR consulting, and benefits. The staff is responsive to our questions and needs and assists us in strategic planning in these areas.” -Jennie Stockard, Brentwood United Methodist
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