3 Signs Outsourced Payroll Is Right for You

Roughly 60% of the population of the US was employed in July of this year. This works out to about 180 million people. That means more than 180 million paychecks will have to be approved at some point.

The task of figuring out and finalizing employee paychecks is known as payroll, and it can be quite a hassle. Although payroll is imperative for a business to produce accurately, small businesses can’t always afford to hire an additional employee to handle it.

For this reason, many companies are turning to outsourced payroll and shifting the task onto a third party. Is outsourced payroll right for you? We’ll discuss how to tell in this article.

1. Improper Handling

If you or one of your employees has made mistakes when doing payroll in the past, it might be time to consider outsourced payroll. Payroll mistakes are common, especially if you’re not used to the task.

Unfortunately, payroll mistakes can have major consequences, losing the company both time and money. If you’re running a small business, you might not be able to afford that. Outsourcing payroll to a company dedicated specifically to payroll can help avoid such consequences.

Keep in mind that not all companies are the same. With the market expected to grow by over $6 billion in the near future, many new companies will likely try their hand in the industry. Not all of them will know what they’re doing.

2. You’re Low on Staff

Running a small business means dealing with only a handful of employees, and that takes a certain level of skill in time management. Having few employees means that each one is likely doing a fair amount of important work, so when extra tasks come up it can be difficult to decide who should do it.

After all, you don’t want to distract from vital work and put the company behind on something. This is an especially big risk if you pay weekly or biweekly because then someone has to frequently put their own work on the back burner to deal with payroll.

3. Compliance is an Issue

Payroll is a bit like taxes in that there are certain rules that need to be followed, and some of them can be very confusing. Many people find it easier to outsource their payroll services to a company that’s well-versed in these standards.

Things get especially difficult for companies in multiple areas or with workers in multiple areas. If any of your employees work from home, for instance,, you might find yourself having to navigate multiple different sets of payment standards.

Outsourced Payroll: Is it Right for You?

Outsourced payroll is growing in popularity each year, and it’s not hard to see why. Paying your employees is often a complicated task, and it’s likely gotten harder since the Pandemic.

We’ve discussed how to tell if you’d benefit from outsourced payroll in this article, but there’s plenty more to learn about payroll and your options for handling it.

You can learn more about it by looking around our site. Feel free to contact us if you have any questions or are in need of an outsourced payroll service.

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Christina Hageny

President - Valor Payroll Solutions

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Christina Hageny

President - Valor Payroll Solutions

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