When you run a small business, you likely do not have the time, ability or manpower to handle every single task in house. Therefore, it can be helpful to your business and allow you to grow faster if you outsource some tasks for which you are not ideally suited.
Payroll is one of these tasks, for several main reasons.
You’ll be able to pay more attention to your core tasks
Payroll may be a critical business function, but it’s not one that can be considered a core activity of your business. It doesn’t, for example, directly impact your customer experience or the quality of your products and services. It’s an entirely back-end process that, while important to your business, isn’t (and shouldn’t be) one of your main daily areas of focus in running your company.
It’s still important to have someone capable in charge of managing payroll. When it’s performed poorly, your business can suffer financially. Your company must comply with a variety of laws at both the federal and local levels, such as tax reporting and remittance, as well as the various requirements for withholding taxes and calculating your portion of those taxes. You’ll also need to keep track of when you need to file those taxes at the local, state and federal levels.
Most small businesses simply don’t have the resources to hire someone who can dedicate their time to payroll tasks, so hiring out a professional payroll service just makes sense.
A payroll service provides reliable technology and expertise
Payroll services don’t just have dedicated staff members capable of handling all your payroll tasks with reliability and expertise—they also provide technology that makes life easier for employers and their employees.
Employers will be able to better keep track of their employee records and receive regular, organized reports. Employees will have options such as direct deposit and access to all of their payroll information online, any time they want it, whether it’s from a web portal or a mobile app. If an employer cannot provide these options, they could well find themselves at a disadvantage when attempting to hire new team members.
Professional payroll services reduce your financial risks and costs
Outsourcing payroll can help you cut down costs and eliminate some of the financial risks your business faces. Some studies have shown that employers often overpay their employees by as much as four percent because of discrepancies between the accurate time record and the employee’s time. The stronger recordkeeping solutions offered by payroll services can avoid overpayments.
Better payroll services also help you avoid possible penalties for reporting violations and violations of other payroll-related requirements. In fact, according to the IRS, about 40 percent of small businesses pay average fines of $845 each year for incorrect or late filings.
For more information about the various benefits associated with hiring outsourced payroll services in Jamestown, ND, we encourage you to contact the offices of Craig S. Hanson, CPA today with any questions you have. We look forward to working with you!