Companies are able to outsource non-core function or enjoy bespoke tailored service from an external service provider that enables them to focus on their own expertise. This is called outsourcing of non-core functions.
Payroll processing is one of the many important responsibilities for companies and is a crucial part for its smooth functioning. The company’s payroll department is responsible for ensuring that all employees are paid on time and receive expenses repayment on time. Payroll services offer an attractive and valuable alternative to in-house processing. This includes:
- Salary payments
- Tax withholding
- Deductions from a paycheck
Payroll outsourcing are a huge factor in determining the progress of a business, irrespective of its size. A primary advantage being that it helps in utilizing time and money of a business owner in a much better way. It is known that a careful utilization of these two factors is the most important of a business progress.
Payroll service providers add more value to your employees by offering direct deposit and opening up the door for offering benefits. Typically benefit administration has been known to be a major hurdle for small businesses to come over. Here outsourcing can help companies alleviate that burden and add greater value to their employees.
Particularly for owners of a small company, trying to do payroll in-house, time is of the essence. Payroll has been proven to be one of the most time consuming task for organisations with multiple staff members.
Payroll processing is really a tedious work. Outsourcing payroll processing services enables you to focus on processes and latest strategies that directly affect the future of your business.
Here are top five reasons small business should outsource their payroll processing –
- Time saved
- Money saved
- Enhanced Security
- The expertise of professionals
It is certainly NOT more expensive to hire out your payroll processing. When you consider the cost of an employee’s wages and add in benefits that can really add up quickly.
If you are the owner of a very small company and you are trying to do payroll yourself,the cost of your time is even greater.
If you outsource your payroll you also don’t have to worry about your payroll processing company calling in sick or wanting to take a vacation or wanting to request a possible maternity leave that you have to pay for. There’s also the matter of confidentiality when it comes to payroll. If an employee wants to “share” how much a fellow employee is making that can cause extreme drama in the workplace.
When considering if you are going to outsourcing payroll, you probably want to examine job function or job description that the employee has in addition to payroll processing function. If you the owner or an employee of your company is placed in a role which generates revenue for a business, it would be a terrible idea to ask them to do payroll in addition to that role. In fact, you should never ask a revenue generating members of a company to focus on administrative tasks. Time is money, and money is what keeps you in business.