Why OutSource ?

Why It Pays to Outsource Your Payroll

You need to keep accurate records, calculate and pay payroll taxes, and communicate effectively with employees. Many business owners are finding that they can simplify the process by using an outsourced payroll provider to manage the entire process cost-effectively and efficiently.

Outsourcing your payroll can provide your business with a number of important benefits:

Save time

Using an outsourced payroll solution is typically more efficient for a business than processing payroll internally. Leaving payroll to experts frees up hours that you can devote to other important parts of your business. Whether it is your time, staff time, or a combination, chances are the hours could be better spent wining more business, improving customer service, fine-tuning business operations or launching a new product line. Among the areas where outsourcing will save time are:

  • Processing payroll
  • Cutting and distributing paychecks
  • Calculating and paying withholding and employment taxes
  • Handling employee payroll inquiries

Save money

Many business owners underestimate the cost of processing payroll internally by failing to account for all hours spent and resources allocated to pay employees and maintain payroll paperwork. A thorough cost assessment usually proves that a business saves money by outsourcing the processing, tracking and filing of payroll documents. To assess your own internal payroll costs, consider:

  • How much the time spent is actually worth: consider the cost of your time and the time of anyone who processes or "touches" payroll. Often, many people in a company are involved in the various parts of payroll processing.
  • What savings would outsourcing provide: since an outside provider can handle all the responsibilities involved in managing payroll and answering employee questions, a business can often eliminate or reallocate an internal payroll resource.

Avoid penalties

Calculating federal, state, and local employment taxes and filing payroll-related tax paperwork can be more than just a hassle. If it's done incorrectly, your business may face penalties and even interest on money owed since the mistake was made. Outsourcing payroll does away with the risk of many of these costs and hassles because:

  • An outsourced payroll provider calculates payroll taxes, based on its expertise and close tracking of regulation changes
  • Monthly or quarterly employment tax reports are managed by the payroll service, ensuring they are submitted correctly and on time
  • End-of-year paperwork such as IT Returns are handled directly by the payroll provider, so they are sent out on time