Do These 3 Myths Sound Familiar to You?
Outsourcing payroll is becoming a more popular option for many small business owners. After all, employees want to get paid accurately and in a timely manner. However, many small business owners still spend hours and hours a week processing their payroll instead of spending that time on what they do best – running their businesses.
So why don’t more small business owners outsource their payroll to professional payroll services providers, like The Payroll Department, located in Brownsburg, Indiana? It may be, they’ve heard several myths floating about the business community that outsourcing payroll isn’t the way to go. Therefore, we want to look at each of these myths in a series of blog posts and shed some on light on why they’re just that – MYTHS – and how your small business can benefit from outsourcing payroll tasks.
Let’s examine the first three myths:
Myth #1: Handling payroll in-house saves us time and money – and means our payroll will be error-free
The many businesses that have partnered with The Payroll Department over the past 25+ years will tell you the opposite is actually true. Payroll can be extremely time-consuming, especially when you’re not skilled at doing it. You must keep track of new hires and terminations; calculate employee hours, paid time off and how much to pay; take out benefit deductions; handle court-ordered garnishments; deal with payroll taxes specific to your state and industry; enter the data; prepare the checks; process W2s; and much more. It’s a lot for a small business owner. Plus, you need to remember your time is valuable. Outsourcing payroll frees up your time, so you can do more productive, value-added and revenue-generating activities.
As for in-house payroll being more error-free, you need to ask yourself how knowledgeable are you when it comes to:
- Overtime and other state labor laws
- Federal, state and local withholding taxes
- Understanding pre-tax/post-tax earnings and deductions
These are some of the more common mistakes made when processing payroll in-house. The penalties for errors, omissions or late payroll tax filings can be extremely costly. Per the IRS, 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings. Payroll providers, like The Payroll Department, know how to handle payroll and tax filing processes. Additionally, Teresa Ray and her staff are dedicated to staying on top of federal, state, local and industry-specific regulation changes that affect your payroll taxes. Therefore, you don’t have to worry about this and you can rest assured that your company stays in compliance.
Myth #2: Payroll outsourcing is too expensive.
For most small companies, outsourcing payroll can save you money. When it comes to cost, you need to consider all the time spent managing the various aspects of your in-house payroll and staying within compliance. Your time and energy would be better spent on managing your company and furthering your goals. When you outsource payroll to The Payroll Department, they will handle the time-consuming details for you, so you can put your resources to better use. Contact Teresa Ray at The Payroll Department to learn more about their payroll services and the true cost of using a payroll services provider – not the mythical cost you think it might be.
Myth #3: I’ll lose all control over my payroll functions.
Yes, it can seem a little scary handing over your payroll tasks to someone else. But you don’t have to be left out of loop or lose financial control. With The Payroll Department, our services are designed to meet your individual needs. If you still want to write checks, you can. If you need custom reports, we can run them. You still have access and control to your payroll data. Just let us know what your needs are.
Clear communication is key when it comes to working with a payroll services provider. That’s why The Payroll Department assigns a single manager to your account. You’ll talk to the same person for every interaction you have. Our partnership is built on transparency, so you can stay in control of those payroll functions that matter the most to you.
Don’t Fall Victim to these 3 Myths about Outsourcing Payroll
If these myths were true, why are so many small businesses outsourcing payroll? When you invest in a payroll provider, you’re making a strategic move your business can benefit from.
Call Teresa Ray at The Payroll Department at 317-852-2568 to learn how we can make payroll easier for your small business.
And check out 3 more myths we debunk about outsourcing payroll in our next blog post on April 18!
-Ariane of The Payroll Department Blog Team