We’re Still Not Done with Myths about Payroll Outsourcing
As a small business owner, your employees’ financial stability is basically in your hands. They depend on you to process payroll in a timely and accurate manner each pay period. Otherwise, your employees can’t meet their financial obligations, such as mortgage or rent payments, car loans, or household bills.
In many small companies, it’s not unusual for the business owner to personally process payroll. However, another option is available – outsourcing payroll to a firm that specializes in handling payroll. But still, many small business owners insist on doing payroll in house, even though a payroll provider can provide their company with multiple benefits.
One of the reasons why small business owners don’t outsource their payroll processes is, they believe the many misconceptions they’ve heard about outsourcing payroll. In previous blog posts, The Payroll Department has discussed some of these myths. You can click here to learn about myths 1-3, and here to read about myths 4-6.
Below we talk about two more common misconceptions that small business owners have when it comes to outsourcing payroll:
Myth #7: Payroll outsourcing exposes our company’s sensitive employee information.
In an age when data breaches are widely publicized, it’s understandable why you may be concerned about the security of your employees’ data, such as names, addresses, social security numbers, and bank account numbers. However, payroll outsourcing is safer than you may think. The professionals at The Payroll Department are specifically trained in human resources data management to keep track of sensitive employee information. Plus, they follow strict industry guidelines to ensure your employees’ data is secure and protected.
While you may think doing your workplace payroll in house is more secure, it isn’t. In-house payroll processing can expose your company to payroll fraud. Per the Association of Certified Fraud Examiners, payroll fraud is the number one source of accounting fraud and employee theft. Furthermore, small businesses with less than 100 employees are twice as likely (14.2%) to have an incidence of payroll fraud compared to larger companies (7.6%). Some examples of fraudulent payroll activities an employee might commit, include falsifying employee hours worked or pay rates, creating ghost employees, or even depositing money into their own bank account.
Therefore, if you want to keep your payroll processing secure, hire a responsible payroll provider, like The Payroll Department located in Brownsburg, Ind. When we work with employers, you, or a trusted employee, are the only one who will have access to your sensitive payroll figures. If you have any concerns about the safety of your sensitive data, talk to Teresa Ray, owner of The Payroll Department, to find out how we will protect your data.
Myth #8: Outsourcing payroll means our company won’t always get our payroll calculations completed on time
Just because your company is handling payroll in house, that’s doesn’t mean it will always be completed on time. Payroll is a time-consuming process. As a business owner, you may be trying to handle your payroll processing on your own while running your company. Or, you may have an employee who processes payroll while performing other tasks. If something occurs within your business that requires you (or your employee) to concentrate on other tasks, your payroll may inadvertently get processed late.
At The Payroll Department, all we do is process payroll. Therefore, we have the systems in place to process your company’s payroll efficiently within your requested time frame. So, you don’t have to worry about your employees getting paid on time. We’re confident we’ll exceed your expectations in processing your payroll.
Call The Payroll Department Today
Don’t let these misconceptions cloud your judgment. At The Payroll Department, we will process your payroll on time and with the utmost care. Therefore, you can spend your time on other priorities like growing your business. Contact Teresa Ray at 317-852-2568 to learn how hiring The Payroll Department can be the best strategic move you make for your company.
Come back on June 20 to read about the final two myths on outsourcing payroll!
-Ariane of The Payroll Department Blog Team