Introduction
Sometimes we get asked why outsourcing payroll is more of an advantage than a disadvantage. Some people argue that you are taking away from the job the regular payroll staff does daily.
There could be an argument for that too, I am not saying there is not. However, and more importantly, there are more benefits to outsourcing, and you can read some of those benefits below.
1)Time and Productivity
Have you ever noticed that your payroll staff gets distracted by other job duties? Your payroll department has to keep track of everything, including things like deductions, new hires, terminations, and paid time off.
The payroll department has a very time-consuming job. It gets harder when the company is ten times the size of a regular office.
That is why outsourcing is great for companies. The outsourced staff concentrates on that and nothing else. Your regular payroll staff can still do their job, but they can also perform their other tasks more productively. They are not going to get pulled in a million different directions at once.
That means you save money(and time) by not having to correct mistakes all the time. It is similar to how you hire someone to handle customer service issues and nothing else. Visit website to gain more knowledge about it.
2)Money
Once again, you are saving money in the long and short-term by outsourcing the department. The outsourced personnel will handle the more complex issues and you handle the day-to-day dealings.
Think of the money you spend annually on correcting simple mistakes your employees make. Now, think about the money you spend on complex issues. You add those together, and that is a lot of money you are losing.
Most business owners agree that it is more efficient to outsource than asking their accountant to handle something.
3)The IRS
Yes, it is tax season. You know what that means. It means that Uncle Sam is going to get you for the smallest technicality. Do you want to put yourself through that?
Outsourced professionals know what the IRS looks at. Do you? We can certainly guarantee that if you do not, then your in-house payroll person is not going to. That is why outsourcing makes sense. You will not have to deal with the IRS for one small mistake. They will take care of that for you. They clean up after their mistakes.
4)Expertise
Your payroll department might only have basic training with finances and money. After all, you probably only hired them for that. You might have a few people in the payroll department that have advanced skills, but not compared to outsourced professionals.
They make their living doing that. They have the latest and greatest resources and technology to assist them too. Your tools and resources might not even compare to what they have.
That is their outsourcing is important. They’ve got the tools to do the job. Plus, you get their resources for free. Otherwise, you would have to pay extra for some of their tools. Think of it as a fringe benefit for hiring them.
5)Access
An outsourced payroll team will have free access to everything they need. You might have to pay someone double for someone less qualified. An outsourced team will keep track of everything that happens with your finances and employees. That proves beneficial when it comes to making those tough choices.
6)Multi-Tasking and Payroll Expertise
Everyone gets overworked at some point(too much multi-tasking). Your regular payroll person might be taking an extended vacation or time off(for whatever reason). What are you going to do then? That is why you should consider outsourcing your payroll department. Every time someone takes time off, calls in sick or leaves for some reason, you lose valuable skills, some of which you cannot replace.
7)The Latest Tech Toys
With new advancements in technology comes new costs. Every company worries about how much the latest software or tech advancements are going to cost. You can avoid all that by hiring outsourced personnel. They come with the latest and greatest tech toys. Plus, you do not have to pay extra for those advancements.
The other great thing is that the latest toys will keep your organization running smoothly. You don’t have to worry about placing a number in the wrong section(the IRS loves those moments because they can get you to pay stiff penalties). The software provides step-by-step instructions on how to proceed. It all comes free-of-charge when you outsource. Otherwise, you would have to pay an obscene amount of money.
