Payroll is arguably one of the most essential HR responsibilities for an employer, especially if you ask the employees. But, for companies that may not have a designated payroll professional on staff, the task of payroll processing can be frustrating and time-consuming for the employer to manage. That’s one of the reasons many employers seek to utilize payroll outsourcing and processing services from providers.

Payroll outsourcing and processing services offer several benefits to small businesses and employers. Not only can it save time and energy, but employers can rest assured that payroll outsourcing providers will keep all processes and procedures in compliance with the latest payroll laws and regulations, avoiding any potential penalties. Here are five reasons to consider outsourcing payroll for your business.

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.

Learn more about payroll and payroll tax services.

See what EP clients are saying:

“LBMC EP is well worth the time and service. If they weren’t handling our payroll, HR, and insurance needs, we would be in a bind having to figure out how to get it all done on our own.” -Loretta Bowling, Chattanooga Oncology & Surgical Associates

“Excellent customer service combined with vast human resources knowledge are two major reasons other companies should consider partnering with LBMC EP. They can also effectively implement their payroll system with yours to keep things functioning and moving smoothly in the transition.” -Linda Moore, John J. Campbell Co., Inc.

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