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The Benefits of Outsourcing Payroll

The Benefits of Outsourcing Payroll

With all the work that goes into preparing and administrating payroll, this activity alone can consume a few days of your week…

Whether you’re a small-business owner or an HR professional in a larger company, managing payroll can be a real hassle. The rules and regulations surrounding payroll can be complex, and often vary from region to region. Outsourcing your payroll functions to a firm that specializes in payroll may sound like just another expense your business should try to do without—but planning to outsource payroll can actually save you both time and money.

Here are four great reasons to work with a dedicated payroll company.

Save Time

With all the work that goes into preparing and administrating payroll, this activity alone can consume a few days of your week. If you own a small business, you simply don’t have the time to devote to payroll—and hiring a payroll employee would be cost-prohibitive. For HR departments, all that time spent working on payroll would be better served if employees could focus on core responsibilities.

Working with a payroll firm saves your business valuable time, and time is money. Outsourcing this function also reduces the stress of having to deal with payroll—and lowered stress means higher productivity.

Save Money

Time wasted is money lost. Eliminate the time and effort spent on payroll every two weeks. Tax-filing services are also critical to government compliance, and can be time consuming and tedious. Many companies outsource payroll as much to get rid of the burden of tax filing as the payroll process itself!

Reduce Compliance Risks

A professional payroll services firm will take on both the responsibility and the accountability for your payroll. This means your company has a reduced risk for employee lawsuits and other costly payroll-related issues, including compliance issues with state and federal employment laws.

For smaller companies, outsourcing your payroll gives you greater separation of duties, reducing the risk of fraud that occurs when just one or two employees handle all of the accounting and payroll activities for the business.

Leverage the Experts

Managing and administering payroll is not as straightforward a process as we’d like. In addition to making sure all checks are cut and delivered to the right employees in a timely manner, payroll has to withhold the right amounts for taxes, monitor any withholdings for benefits, and track accumulated vacation time, sick days or advances. All of this must be in compliance with the latest local, state and federal employment laws.

Since payroll firms handle nothing but payroll, they’re experts on this topic. They’re always up to date on the rules and regulations that govern payroll, taxes and benefits, and they can help ensure that every employee is paid correctly and on time. Establishing a professional relationship with a payroll service provider makes it easier for your company to outsource more functions as your business needs grow and change.

Looking to outsource payroll services for your organization? Learn more.

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This blog is for informational and educational purposes only. It does not constitute legal advice, and cannot constitute legal advice, because the authors are not licensed attorneys. Readers should not rely or act upon any information presented on this blog without seeking professional legal counsel. The views expressed in each post are those of the author, and the author alone; they are not the views of Ahola. The information provided in this blog is general, and based on information available as of the date of publishing. Information herein is provided on an “as is” or “as available” basis; we make no warranty of any kind to you regarding the information provided and disclaim any liability for damages from use of the blog or its content. Please consult an attorney to obtain advice with respect to any particular question or issue.