In a recent from Shared Services and Outsourcing article about outsourcing global payroll, this remark jumped out at me:
While most analysts maintain that cost alone should not be the determining factor in any decision regarding outsourcing, it’s a rare outsourcing deal that ends up costing the buyer more than keeping the process in-house would have done.
And while the article was talking about large global corporations with employees and payroll in a variety of locations around the world, the same can be said for small businesses as well.
Perhaps the reasons are a little different, but the outcome is the same: outsourcing payroll can be more cost effective, efficient and safer than trying to keep up with changing payroll tax laws and getting paychecks issued accurately and on time to employees.
The cost of automation applies to payroll, too
One thing that small business employers sometimes do not think about is the cost of automating payroll. Every day it gets more difficult to operate any business without computers involved in every operation, and payroll is no exception. And computers have become not only a necessity, but a costly expense as well.
Although it is possible to physically write checks for payroll tax deposits, most reporting is done online directly to the appropriate agencies. The agencies don’t care whether your workplace has one employee, one hundred employees or one thousand employees. The systems and processes they require are required of everyone.
Because of that reason, it is often less expensive to outsource payroll. Not only do you not have to keep up with changing payroll tax laws and rates, but you don’t have to keep up with the mechanics of payroll processing, either.
At The Payroll Department, payroll is all we do. We are committed to staying current with the payroll tax laws and, equally as important, with all the hoops, dotting of the Is and crossing of the Ts – so you don’t have to.
So, when considering if it is worth the time, effort, cost and attention required to process your own payroll, we can pretty much guarantee that it is NOT – even if it’s a payroll for just a few employees.
We make it as easy as possible to set up payroll, manage the roster, get checks and deposits issued and those payroll tax reports submitted accurately and on time. So you don’t have to worry about any of it. You can concentrate on getting more business, increasing profit and maybe hiring a few more employees!
-Elaine of The Payroll Department Blog Team