6 Benefits Of Working With A Payroll Service Provider
In 2018, it was estimated that the global market for outsourcing was worth about $85.6 billion. Many businesses utilize outsourcing to save time and cut down on their operational costs. One of the most commonly outsourced services is payroll.
Do you want to learn more about the benefits of payroll services and why you should consider outsourcing your payroll needs?
Keep reading this article for the top six benefits of using a payroll service.
1. Payroll Service Provider Helps You Overcome Common Business Challenges
One of the biggest benefits of working with a payroll service provider is that it helps you overcome common business challenges.
As a small business owner, you likely have a lot on your plate. This includes record-keeping, privacy and confidentiality, tax compliance, payroll accuracy, and even staying on top of employment law and regulatory changes.
This can quickly become overwhelming if you are doing everything on your own. When you hire a professional payroll service provider, it will help you deal with each of these challenges. So, what are payroll services?
Payroll services help with administrative work, like cutting checks. It also helps with time management, recruiting and retention, and other human resource and risk management services!
Outsourcing your payroll and these additional services will allow you to focus on other important aspects of your business without having to worry about these challenges.
2. Maximum Accuracy in Payroll Computations
Another important benefit of outsourcing your payroll services is that it will provide you with maximum accuracy when it comes to payroll computations. Human error is one of the largest causes of payroll inaccuracies.
There are many things that go into your payroll computations. These include:
- Salary adjustments
- Withholding tax on compensation thresholds
- Mandatory government contributions
- Leave credits
- Sick leaves
- Overtime worked
- 13th-month pay
- Bonuses and benefits
- Allowances
- Other considerations for individual circumstances
If your payroll is not accurate, it can lead to issues with your employees, compliance penalties, and more. However, a payroll service provider is trained to do payroll quickly while increasing accuracy.
This will provide you with peace of mind as a business owner. You can feel confident that everything regarding your payroll, including taxes, compliance, and more, will be done correctly.
This reduced risk will allow you to focus your energies on other important areas of your business.
3. Payroll Tax - Ensuring Compliance
Payroll tax can be a complicated topic for many business owners that don't have a background in finance. Typically, businesses are responsible for calculating and withholding taxes from their employees.
Plus, business owners need to pay the employer's share of payroll taxes. If these taxes are not calculated or paid correctly, your business could be penalized by the IRS. This is such a serious issue because these payroll tax withholding collected by business owners make up 72% of IRS revenue.
To ensure compliance, your payroll provider will have to consider a monthly withholding tax on compensation, the annualization of employee compensation income, and the annual information of income taxes withheld on compensation annually.
To avoid compliance mistakes, businesses can hire a payroll provider. They will ensure that you are tax compliant and will reduce the chance of manual error causing payroll tax inaccuracies.
Is payroll a thorn in your side? Let us handle all the stress related to payroll so you don't have to...
4. Set-Up and Management of a Payroll System
Another one of the top benefits of outsourcing payroll is that they will set up and manage your payroll system for you.
Managing your payroll system can be difficult, especially if you regularly have changes to your employees. Small changes, like your employees moving to different tax jurisdictions, can affect the tax withholding calculations.
Creating a payroll management system for the first time can also be quite difficult. This includes applying for an employer identification number, gathering employee tax documents, and more.
When you choose the best professional payroll provider, they will take care of each of these steps for you! If there are any changes to your employees, they can update and manage the payroll system to keep it as accurate as possible.
5. Payroll Service Provider Manage and Streamline Rules, Regulations, and Services
Another benefit of working with a payroll service provider is that they can manage and streamline all of your rules, regulations, and services. Streamlining your payroll services is necessary to keep it organized, meet deadlines, and save money.
Payroll service providers have experience managing payroll, so they understand the necessary rules and regulations to follow as well.
This will help you stay compliant as a business owner and ensure that your payroll is done correctly and efficiently.
6. Payroll Providers Can Save You Fines and Fees
Finally, finding the best payroll provider allows you to save money as a small business owner. Running payroll can be quite expensive. Not only will you need to pay for specific
payroll software, but you will need to pay the person in charge of payroll.
Typically, payroll will cost a few hundred dollars per employee per year. Plus, if you deal with payroll compliance issues, there will be other fines and fees that you have to pay.
Outsourcing your payroll responsibilities is a cost-effective solution and it may even end up paying for itself in the future. Payroll specialists are trained to do your payroll quickly and efficiently so you can save money.
Learn More About the Benefits of Payroll Services
You may be wondering, "should I use payroll services?" There are many benefits of payroll services. It helps them save time and money and it also prevents payroll errors and ensures compliance. By considering each of these benefits, you can protect your company and improve your employee satisfaction.
Do you want to learn about the benefits of payroll services? Bulldog Payroll can help! We handle all the stress of payroll so you don't have to.
Contact our team to schedule a free consultation and to learn about our payroll services.
Are you looking for more payroll processing information? Check out our
Ultimate Guide to Payroll Processing.
Is payroll a thorn in your side? Let us handle all the stress related to payroll so you don't have to...
