As a business owner, you have plenty of responsibilities. Not only do you need to supervise the employees who work for you, you also need to focus on revenue generating projects to keep the business running. The best thing that you can do as a business owner is to delegate some of the day to day responsibilities. One responsibility that can be outsourced is payroll. There are several benefits of having a payroll service handle the responsibility.
Direct Deposit
If you are running a small business with just a few employees, you may not be able to offer your employees direct deposit. Most employees want direct deposit so that they don’t need to worry about standing in long bank lines each week. When you outsource your payroll, your employees would be eligible for direct deposit.
No Need to Reconcile Cheques
If you are doing your own payroll, you would need to reconcile your payroll cheques each month. This can be very time-consuming. When you hire a payroll service, it would be their responsibility to reconcile the paycheques.
Convenience
Outsourcing your payroll is the most convenient way to get the task done. Most payroll companies offer online payroll services, where you would input your employees’ hours for the week. You can also update information online, such as the changes in employee’s addresses, changes in their tax filing status, and changes in their hourly wage. If an employee is on vacation, you can update that on the computer. The same is true if you hire someone new or if someone leaves the company. Being able to do all of these things online makes outsourcing easy and convenient.
No Penalties
Mistakes can be easily made when doing payroll. If the taxes withheld are not deposited by a certain date, it can result in a hefty penalty for your business. If you are not using the most recent tax tables, your employees’ cheques will be wrong and that can result in a penalty fee as well. When you hire an outside company to handle your payroll, there will likely be little or no mistakes made. These people spend their entire day doing payroll, therefore, they have the knowledge and experience necessary for the job. If there are errors, you wouldn’t be responsible. The payroll service would be responsible for paying the fees and penalties.
Constant Service
If you have given someone in your company the responsibility of handling the payroll, you could end up with problems. If your payroll employee is sick or goes on vacation, there will be nobody there to do the payroll that week. If your employee quits or they are fired, you won’t have anyone to handle the payroll or to train their replacement. When you hire a payroll service, there will always be someone there to handle the job, even if your regular agent is sick, goes on vacation, or leaves their job. There will always be someone else to pick up the slack.
Cost
Hiring an outside payroll service is more cost effective than hiring an in-house employee to handle the job. If you hire someone, you would need to pay them a salary and offer them benefits. You would also need to create a workstation for them, including a desk, chair, computer, and telephone. This can be very costly. Hiring a payroll company can cost up to 1/3 less than hiring a full-time employee.
As a business owner, you are often drowning in responsibility, which can be extremely stressful. The best way to relieve some of the stress and responsibility is to outsource your payroll to a professional payroll service.
