Millions of U.S. small businesses outsource their payroll processing. Why do they do it, and what benefits does it bring them? Here’s why:
Time saved – No matter how many employees a small business has, processing payroll demands a lot of time and attention to detail. Pay period follows pay period, each time requiring the business owner or their payroll person to type in large amounts of data and double-check for any keying errors. That’s time taken away from critical tasks like building revenue and serving valued customers.
Money saved – Time saved is money saved. Think of the time required for each of the following:
- Calculating payroll each time period
- Printing, signing, and distributing paychecks or pay stubs (as necessary) –
- Generating reports for in-house and accountant use
- Preparing and remitting payroll taxes and returns to government agencies
Enhanced security – Payroll processing is a complex and potentially risky business operation. Even with trusted employees, there is always a risk of identity theft, embezzlement, or tampering with company records for personal gain.
Compliance with government regulations – Generally speaking, small business owners aren’t experts in the complicated world of government tax regulations. At the same time, they’re legally responsible for any cases of misrepresentation or a failure to accurately report employment taxes to federal and state government agencies.These mistakes can lead to audits and penalties — situations no small business wants or needs.
Government rules and regulations are always changing, and small business owners can’t be expected to stay on top of these changes. Professional payroll providers, on the other hand, must stay current with rules, regulations, and changes in tax rates. Some even have whole departments dedicated to helping clients stay aware of regulatory updates, so they can make more informed decisions about their business.
The expertise of professionals – A professional payroll company employs individuals who know payroll processing inside and out. These individuals specialize in the complexities of payroll taxes, as well as compliance with government regulations. It’s what they’re trained to do and part of the guaranteed service they provide.
When evaluated on a per-payroll-period or a monthly basis, a time/cost analysis may well indicate the benefits of an affordable full-service provider like the AjaPreneur Consulting Agency.
wHAT OUR CLIENTS ARE SAYING!
David Greene, Owner of Alton Software. I love the outsourcing our recruiting to The AjaPreneur Consulting Agency. There staff is so friendly, they aleways find the best quality of candiudates, and since I’m seen a significant decrease in turnover.