The Value of an Outsourced Payroll Solution

In many small businesses, we see managers wearing multiple hats to keep their companies running. This means an office manager or even the business owner themselves might be the ones who are processing payroll, issuing checks, and taking care of payroll tax deposits and filings. These individuals’ core functions rarely have much to do with payroll at all. Add to this the associated tax deposits and necessary filings with the state and IRS, and this can quickly become a dreaded and tedious administrative burden. And let’s not forget about the possible ramifications of missing a deadline or miscalculating an employee’s check.

On the other hand, an outsourced provider will have a team of individuals whose day-to-day jobs are focused solely on payroll. Some of these individuals may also possess special certifications such as the FPC or CPP – designations awarded by the American Payroll Association for payroll professionals who pass a rigorous exam. These certifications must also be renewed regularly through re-testing or proof of re-certification hours gained by attending educational seminars and industry events. This means you’ll be able to leverage the knowledge and expertise of individuals who are keeping up with the latest developments in payroll law and taxation so your organization remains in compliance and avoids costly errors or penalties.

Of course, there’s always the option of hiring an in-house person or team to take care of your payroll. However, this may not always be the best route to take. Most business owners know that the true cost of an employee is much more than just their salary. After factoring in benefits, taxes, workers’ compensation, and other associated costs, you may find that using an outsourced payroll provider is the economical choice. And what happens when your in-house processor is out sick with a critical payroll deadline approaching? Service providers generally have contingency plans to deal with such unexpected absences so you can rest assured that your payroll will be processed on time.

Another aspect to consider is the software and/or technology used in calculating and producing employees’ paychecks. Your basic accounting software may be able to handle a simple payroll, but a payroll provider will likely have access to specialized payroll software. These programs are equipped to handle payrolls of varying sizes and complexities, and most will offer some degree of integration with major accounting systems so you don’t have to uproot your existing processes. An added benefit offered by many payroll providers is secure and easy online access for you and your employees to their payroll data, including past pay statements and W-2 forms, so you aren’t having to deal with those requests.


Outsourcing your payroll function allows you and your team to focus on your core business, without getting bogged down in the day-to-day administrative work. If you’re still spending your time cutting paychecks for your company in addition to your day job, contact Valor Payroll Solutions to see how we can help give you peace of mind and take away the pain and hassle of processing payroll.

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