As a business owner, you want to focus on your core business – not all the administrative tasks that get in the way. Processing payroll is a biggie – between changing tax laws and the Affordable Care Act, can you really devote the necessary resources to do it right? Here are 10 signs it might be time to outsource your payroll processing:
1. You’re spending way too much time on it. It can be a time sucking activity that takes precious productivity away from both you and your staff.
2. The cost of managing payroll is eating your budget. Not only do you incur the cost of wages and benefits for your staff, but also printing and distributing checks and reports. Outsourcing your payroll could also allow you to reduce your administrative staff.
3. You don’t have great internal controls. Potential fraud is a great reason why outsourcing may make sense. Having a fresh set of eyes from an outside firm provides another layer of protection, and your provider knows the payroll processes and red flags that could indicate a potential fraud issue. Small businesses often don’t have the depth of administrative staff that allows segregation of duties, so an outside payroll firm can make a lot of sense.
4. Accuracy is a concern. Payroll mistakes happen, and can be costly. A payroll firm keeps up to date on new regulations and has processes in place to catch mistakes before they go out the door.
5. Your company is growing . . . to other states. Growth is great, but often comes with a price tag. Different states have different laws, from minimum wage to unemployment. Do you want to have to keep up with all those rules?
6. The Affordable Care Act. Staying on top of the Act is a challenge, particularly since the reporting requirements can be complicated. Payroll service providers know what needs to be reported and tracked, lessening the burden on you and your staff.
7. Speed and seasonality. Payroll specialists have terrific technology so they can manage payroll quickly. And a good service will also understand if you have seasonality issues with your business, like hiring additional staff at peak times during the year.
8. You’d like to offer electronic pay options to your employees. Direct deposit, pay cards and the ability for your employees to manage their payroll and benefits online are important and expected by today’s tech-savvy employees.
9. Your administrative staff changes frequently. If you have a revolving door in your payroll department, you’re spending time and money to find and train new staff. Outsourcing can keep the disruption to a minimum if your administrative staff goes on vacation, gets sick, or runs off to Bermuda.
10. You’d like to sleep at night. Not having to worry about payroll can give you more time and energy to focus on other aspects of your business.
Want more information about the payroll services offered by Mize Houser? Visit our website by clicking here. We’re here to help!