Business accounts may come and go, and your company’s finances may ebb and flow, but if you’ve got any employees at all, you have at least one consistent thing in your business life: payroll! No matter what happens, your people need to get paid — and they need to get paid in full, properly, and on time.
Whether you have hourly or salaried employees, payroll is never as simple as tallying up how much they’ve worked and paying them accordingly. There are so many considerations and nuanced details when it comes to writing paychecks, which is why many businesses have made a practice of outsourcing this job to a payroll service. It may seem like an extravagance for a small company, or even a large one, to use an outside payroll service, but ask any executive of a business that uses one, and he or she will confirm that it’s money very well spent.
Why should your business use a payroll service? Here are seven good reasons.
It’s always wise to assign jobs to experts. We’re often told to trust the experts, and payroll companies are experts when it comes to getting paychecks out on payday and with no accounting errors. They do it all the time, and they’re highly accurate. You may be good at lots of things, but payroll probably isn’t one of them.
Your time is valuable. You started your business because you have innovative ideas that you can parlay into a career, not because you wanted to spend your time doing menial office tasks like cutting paychecks. Your time is best spent on your business, and payroll services can handle the job of getting everyone paid quickly and more accurately than you can. Plus, they can also handle tax preparation documents for you. When you use a payroll service or tax advisor, you get to spend your time on your business, and they handle the paychecks.
You don’t have to worry about keeping up with ever changing tax codes and policies. How much should be coming out of each employee’s paycheck for taxes? The answer to this question seems to change with each election cycle. Rather than worrying about if you’re doing tax withholding properly, your payroll service will handle it for you so that all of your tax withholdings are accurate.
Onsite employees who handle payroll can be transient. If you’ve got a larger company, it may seem like a good idea to keep payroll in-house. You can hire an HR person to handle it for you, but as you know, employees don’t always hang around forever. If your payroll person leaves, he or she takes the lion’s share of the knowledge with them, and then what? You can hire someone new, but there’s always a lag between employees, and meanwhile, your other team members need to get paid. When you hire out your payroll to a service, you’ll never find yourself in this scenario.
There’s more security. When your business is built on handling people’s sensitive information, as is the case with payroll services, you employ the latest security measures to make sure there are no data breaches. If you handle your own paychecks, you probably don’t have any data encryption or other security on the information you use, but a payroll service will.
It costs less than you might think. Hiring a job out always seems like it will cost an arm and a leg, but in reality, payroll services don’t cost that much. Get a quote or two from reputable payroll services, and you’ll probably be surprised at how affordable outsourcing your payroll can be.
It’s just easier. When you use a payroll service for your business, you eliminate a giant source of stress from your life. You don’t have to worry about getting paychecks written every two weeks (or however often you do payroll), and you don’t have to deal with any issues with difficult or disabled technology. It just gets done.
This post is part of our contributor series. It is written and published independently of TNW.