Why outsource your payroll?
There was a time a business payroll was doling out cash at the end of the day. That time is gone. Payroll, payroll record keeping, payroll tax reporting have become complex and full of pitfalls for the unwary or uneducated. The process can be time consuming and expensive. By outsourcing your payroll processing you are avoiding risks and taking advantage of all the technological advances to save time and money.
Save time
Using a payroll outsourcing provider will save you time. In particular, an online payroll service that provides a paperless payroll solution. How will they do that?
You will be able to enter the time anywhere and at any time from any computer connected to the Internet.
Your payroll outsourcer will process all payroll, and if you use a paperless payroll solution, all net payments will be distributed electronically. You no longer have to waste time and money handing out checks and pay stubs. Your unbanked employees will no longer have to pay exorbitant fees just to collect their paycheck. Employees will no longer have to run to the bank to deposit or collect their paycheck and get stuck in long lines. You no longer feel obligated to cash checks for your employees. No more reissuing lost or washed checks.
Your payroll outsourcing provider will do all of your payroll tax deposits for you. Your payroll outsourcing provider will complete and file all payroll tax forms with all government entities they are required to report to. Your payroll outsourcing provider will not only do all of this, they will ensure it is done correctly.
Your payroll outsourcing provider solution will provide all employees with pay stubs and year-end W-2 forms online. You no longer have to keep track of terminated employees to provide them with W-2 forms.
Your payroll outsourcing provider that uses paperless payroll will be able to provide you with all your reports via email or the Internet. They are encrypted and protected from praying eyes. You no longer have stacks of old reports to lock away and ultimately pay to have them destroyed.
Save money
Some business owners don’t realize the true cost of doing payroll at home. They do not add up all the hours spent on various aspects of payroll and related activities that a payroll outsourcing provider would take care of. Part of the money savings is due to the following:
Your payroll outsourcing provider guarantees the accuracy of calculating and filing your payroll tax reports and payroll tax deposits and will pay any penalty or interest you are charged for their error.
You’ll never have to pay for a software upgrade or new tax tables. Your payroll outsourcing provider should provide all of that as part of their payroll services.
Your payroll outsourcing provider will draw your company’s bank account in a single draft eliminating the cost of payroll checks and the cost of reconciling payroll checks. Plus, this eliminates check fraudsters from using your payroll checks to commit fraud.
You will never have to pay to reprint a Form W-2 for an employee who lost or did not receive their Form W-2 because their payroll outsourcing provider posts them on a secure, password-protected server for your employees to view and print. .
Your payroll outsourcing provider using a paperless payroll solution will distribute all net payments to each employee electronically. There are no lost checks to replace. No delivery cost for checks or payroll receipts. Do not send checks to employees at other locations.
Your payroll outsourcing provider using a paperless payroll solution will send you all reports electronically, free of postage. No storage costs for old reports and no costs to eventually destroy them.
There are plenty of other places, some of which you’ve probably already thought of, where you can save time and money by outsourcing. So why doesn’t everyone outsource payroll? Here are some reasons people don’t outsource payroll and answers to your questions.
Q: Cost
A: The cost is much less than most people think, check payroll prices. It’s a lower cost than the cost of people, software, hardware, security and systems, training, forms, accounting fees, fines, IRS inquiries, etc. necessary to do an internal professional job.
Q: Loss of control
A: Actually, your level of control increases. You have time to review. It has full reports that are safe from praying eyes. It has payroll outsourcing professionals, sometimes CPAs, to answer questions and help you avoid pitfalls you didn’t even know existed.
Q: My payroll is unique
A: It can have unique aspects, some payrolls do. Payroll outsourcing providers are used to that and have very sophisticated software that can handle just about anything. In fact, a payroll processor is more likely to have software to handle unique circumstances than the average small business.