WHY PAYROLL IS ONE FUNCTION YOU SHOULD OUTSOURCE!
Ideally, outsourcing achieves three main goals:
1. Focus Better on Your Core Business
Payroll is one of those critical functions that may not directly increase sales. But carried out poorly, it can put your business in a world of hurt. And most of all, it can sap internal time and attention away from core activities.
2. Get Access to Expertise and Technology
Employers have to deal with almost 10,000 federal, state and local taxing jurisdictions across the United States. Just as important as expertise is new technology. Employers today rely on technology to operate more efficiently. As your business grows, you have more employee records to keep and also need more reporting.Employees also expect technology. Employees today want options like direct deposit and self-service access to their payroll information online. Employers that aren’t able to provide such options may be at a competitive disadvantage.
3. Reduce Costs and Risks
Outsourcing payroll can also assist with cutting costs and limiting risks. On average, it has been stated that businesses are overpaying employees by about 4 percent because of differences between the employee’s time and an accurate time record. Then you have the potential penalties for violating reporting and other requirements. According to IRS figures, 40percent of small businesses pay an average penalty of $845 per year for late or incorrect filings.