Payroll management can be a time-consuming job. While many small to mid-sized business owners handle their own, others prefer putting their payroll in the hands of a professional, third-party company.
Moving payroll operations to a third-party vendor, referred to as outsourcing, might seem like an unnecessary cost. However, the benefits that come with outsourcing payroll can be extremely rewarding.
Here are three top benefits that your business can gain by outsourcing payroll.
1. Cut down on internal payroll costs
Business owners that analyze how many labor hours and supplies that are devoted to payroll-related activities might be surprised to see how costly an activity like payroll can be.
Not only are some businesses potentially paying a specific, specialized employee to manage payroll, but costs associated with printing and distributing checks and computer software are very hard to avoid and can quickly add up. Plus, those unfamiliar with the latest tax rates/laws can run into additional expenses in the form of penalties.
While there may be an initial cost, partnering with an affordable, full-service payroll outsourcing provider can help you avoid these potential expenses. A side-by-side comparison between in-house and outsourcing payroll may be more surprising than you think.
1. Shift the focus from payroll to growth
Manual, in-house payroll often demands a great deal of resources that many smaller companies do not have. This commitment often comes at a cost, especially if designated employees have other job responsibilities beyond payroll.
By outsourcing to a reputable, third-party provider and eliminating complicated payroll tasks like adding new hires, calculating overtime, and navigating federal withholdings, those that manage payroll can instead focus on functions that are strategically more important to the business.
3. Eliminate compliance risks
Payroll and tax compliance can be extremely stressful for the average business owner. The more time spent worrying about compliance issues and potential fines, the more overwhelming a payroll process can become.
Most payroll outsourcing partners can help businesses navigate compliance, and find peace of mind knowing that their paychecks and payroll taxes are handled with care by professionals.
Ready to simplify payroll?
In conclusion, outsourcing payroll can be a beneficial decision for a business. Whether it's saving time, or reducing compliance risks, there is a lot to be said for the peace of mind that outsourcing payroll services can bring to businesses of all sizes.
If you are a business owner or manager considering payroll outsourcing, get in touch with SynchronyHR. Our payroll professionals can show you how your business can benefit from payroll and human resources outsourcing.