Monday, October 6, 2014

Outsourcing Payroll Operations Makes Business Sense

A chief expense for any business is their payroll. They have to pay employees to do the work that they do obviously, but this is an expense that most businesses want to minimize as much as possible. The expense of just getting those checks out each week is a burden, particularly for small businesses that are trying to make some inroads and grow. 
Cost Savings Start Immediately 
There are some interesting numbers that have emerged relating to the cost savings that can be enjoyed by those who outsource their payroll. lays it out in a simple way with this,
The direct costs of processing payroll can be greatly reduced by working with a payroll provider. Our research indicates that a small business with 10 employees will typically spend $2,600 per year in direct labor costs associated with payroll.
It is beautifully simplistic and true. Savings for outsourcing payroll work can be enormous, and they can start to manifest themselves immediately. 
Direct Deposit Capabilities 
Who wants to hold a paper check anymore and be responsible for taking it to the bank to deposit themselves? Not too many people. Most have now embraced the reality of direct deposit and the ability to get the money that they have earned deposited right into their bank account directly from their employer. Once again, this is what outsourcing can provide. A direct avenue from money earned to money sitting in one's bank account. It just requires an outsourced payroll department. 
Lessen Human Error 
Another factor critical to consider when determining if outsourcing is appropriate is how much it can save in terms of human error. Payroll companies are very efficient and great at avoiding making payroll mistakes. By contrast, sleepy payroll employees may not be as great at catching and preventing these mistakes. Since payroll mistakes are very serious, it is best to play it safe and go with the professionals. 
Contact us if you would like to know more about what it means to outsource payroll operations and the benefits that can be enjoyed. 

1 comment:

  1. If you choose to handle payroll on your own, you’ll have to handle all the responsibilities, as well as managing tax calculations and other key compliance functions for every payroll period.
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