When companies start to think about ways to cut costs and streamline operations, one of the first things that come to mind is outsourcing. Finding the right tasks or responsibilities to outsource can result in major savings and greatly improve efficiency within an organization. One of the most common business functions that companies choose to outsource is payroll.
What are the benefits of outsourcing payroll?
Outsourcing payroll can provide a number of benefits for a business. For smaller companies, hiring a payroll person for their team might not be an option; business owners know that the cost of an employee is more than just their salary, and good talent may be tough to find, or might be out of budget. In these companies, payroll might be handled by the owner or an office manager. The responsibility of keeping up with changes in legislation and making sure all calculations are handled correctly can add to these individuals’ already busy days and quickly lead to burnout.
Work with a payroll expert
Working with a payroll provider allows the business to benefit from the expertise of individuals whose core business is payroll. An outsourced payroll provider gives the organization access to specialized expertise and advice, from a team that understands the intricacies of payroll and is familiar with industry best practices. Not having to spend the time to research proper calculations, regulatory changes, and other payroll compliance items allows the company to focus on its own core business, knowing their payroll will be taken care of accurately and on-time.
Free up time for other tasks
Companies with dedicated payroll processors or payroll teams can also benefit from an outsourced arrangement. A common misconception is that outsourcing will take away jobs from existing employees. While this can sometimes happen, it is not always the case. Outsourcing lower-value tasks such as data entry, basic calculations, and paycheck distribution can free up time from the employees’ schedules and empower them to focus and spend more time on high-value activities and strategic initiatives without getting bogged down in the day-to-day work.
Access to payroll tools and software
Service providers often have access to tools and secure software that allow for employees to use self-service functions for things such as updates to contact information, electronic access to pay stubs, and changes to state and federal tax forms. This added convenience allows employees to enter these changes on their own saves the internal team from being constantly interrupted and having to take care of basic administrative tasks.
Payroll can be a very tedious and time-consuming job, and small errors can lead to big liabilities. Finding good talent can be difficult, and hiring a dedicated employee or team can be a costly expense. Outsourcing may be the cost-effective and easy solution to free up your team and allow them to focus on the core business. The team of experts at Valor Payroll Solutions can ensure payroll compliance and give you peace of mind while helping to take your company to the next level. Contact us today!