As every business owner knows, payroll is a critical function for any company. The payroll team makes sure the employees are paid correctly and on time each period, and in many cases are also responsible for the periodic tax filings, deposits, and year-end forms like the W2. Incorrect paychecks and inaccurate tax forms can quickly lead to unhappy and disgruntled staff, not to mention the costly penalties and interest, as well as the time involved in correcting errors. With payroll playing such an important role, some may question why anyone would outsource and lose control of this part of their business. The truth is, there are numerous benefits to outsourcing payroll, and an outsourced solution doesn’t have to mean that the business gives up control.
Expertise
While it’s true that you could hire a dedicated payroll person or team for your company, at the end of the day, payroll is not your core business and it is not what your business is focused on. For an outsourced payroll provider, payroll IS their core business, and that means they will have expertise and knowledge that can be difficult to find elsewhere. Outsourcing companies generally work with multiple businesses of all sizes across various industries and geographical areas, which means they will have valuable experience and have first-hand knowledge of best practices for any scenario. And if not, they are likely to have connections and contacts in the payroll industry who do. Many of these companies also have access to software that can make life much easier for you and your team by integrating timekeeping, onboarding, and human resources.
Cost
Depending on the size of your business, outsourcing can be a cost effective solution for your company. Having an outsourced partner take care of much of the payroll processing can free up your resources. That means your team can spend more time focusing on your core business, and less time worrying about administrative duties. This can be extremely valuable for smaller companies where the managers or business owners are spending their already limited time doing payroll. As the saying goes, time equals money.
Peace of Mind
Anyone who has tried to read an IRS statute or a Department of Labor regulation knows that the language is not always easy to understand. Add to that the intricacies of different payroll and taxation rules for different states, cities, and sometimes even school districts, and things can start getting really complicated really quickly. Payroll regulations are constantly evolving, and it can be quite challenging just to keep up and stay compliant with all of the ever-changing developments. And let’s not forget about the multiple deadlines that companies face for reporting and depositing taxes, funding retirement accounts, and most importantly, getting people paid.
Outsource Your Payroll to a Professional
With all of this information, the real question is: why wouldn’t a business choose to outsource payroll? Valor Payroll Solutions provides the expertise and support to free up your valuable time and boost the efficiency of your business by using our integrated solution. Contact us today and let us show you how we can help.
