1. Save Time
One of the primary reasons a company may outsource any service is to save time. Handling payroll is a time-consuming process that takes up valuable time for business owners that could be spent building revenue and connecting with customers instead of calculating and distributing paychecks. An outsourcer can streamline payroll tasks such as calculating payroll each time period, printing and distributing paychecks or pay stubs, program maintenance, training, keeping up with changes in tax rates and laws, and preparing payroll taxes and returns to government agencies. Implementing systems like UKG Ready™ and populating effective reports promote efficiency as well.
2. Save Money
Cost savings is a key priority right now for many businesses, but especially small to medium-size businesses. Companies of this size may find it more cost-efficient to outsource instead of having a payroll department in house. Professional payroll providers can also save companies from costly penalties related to tax and compliance. Processing payroll on your own may cost you more in the long run if you or your department fails to keep up with the latest requirements. Something else business owners must keep up with is installing the latest version of their payroll software and recent tax tables. Using the wrong tax tables can result in stiff penalties. Paying a maintenance fee and upgrading software is an ongoing cost that payroll providers can remove.
3. Avoid Penalties
Knowing how to properly manage tax deductions and meet the federally mandated taxes for Social Security and Medicare is one of the leading factors in productive payroll management. A payroll outsourcing company can properly ensure the filing of federal, state, and local tax returns, while also processing payment for all payroll tax liabilities. Employers can also benefit from a payroll outsourcing agency’s on-time responses to tax agency inquiries. You may not be or have an expert to handle the complicated world of government tax regulations. These rules and regulations often change, and it can be difficult for small business owners to keep up with payroll-related legislation changes, especially in today’s world. Business owners are legally responsible for any cases of misrepresentation or a failure to accurately report employment taxes to federal and state government agencies.
4. Enhance Security
One of the greatest concerns for small businesses when it comes to outsourcing payroll and processing is data security. A professional payroll provider will have taken extra precautions to defend against potential data breaches. Employers must take every step to ensure employee data is always kept safe and secure. Knowing that a high level of sensitive data is within their care, payroll providers go the extra mile to keep client information safe and secure from cyber-attacks. Choose a provider that is equipped with the proper tools and tactics to protect sensitive employee data.
5. Eliminate Worry
Leveraging a team of experts to handle all your payroll needs has multiple benefits for you and your business. You will have one point of contact, so you won’t have to worry about a call center or team members calling in sick, resigning, or requesting to go on vacation. Your outsourcer will help you prepare, collecting all the information they need in advance, leading to a smooth transition. Reach out to discover the added value, resources, and savings LBMC Employment Partners can provide your company.