While some companies choose to handle payroll in-house by doing manual bookkeeping or using payroll applications, others have learned to value the convenience and efficiency of working with a third-party professional payroll service provider. The majority of business owners that place a premium on their peace of mind and time now outsource payroll. By working with a full-service payroll service provider, they are relieved of the majority of their payroll responsibilities, such as salary computations and withholding and depositing taxes.
If you’re wondering whether outsourcing payroll services is for you, too, read on to know the benefits you can enjoy.
Top Reasons to Outsource Your Payroll
1. Save time that can be used for other more important aspects of the business.
When an employer outsources their payroll processing, they have more time to devote to other aspects of their business that are crucial to its expansion, such as the creation of new products, providing excellent service to existing customers, and increasing sales.
2. Avoid payroll errors.
Payroll problems frustrate and expense employers and employees. For instance, a state tax deduction mistake can result in a large tax deduction from an employee’s final payment of the year during the holidays. Incorrect pay rates or missed hours can also lower an employee’s income, causing dissatisfaction and discontent. These blunders can harm employees and damage employer-employee relations. Payroll services automate numerous tedious computations and data input tasks, decreasing errors.
3. Maintain compliance with government tax and wage regulations.
Compliance is vital to businesses. Having the peace of mind that you’re compliant with regulations is indispensable. Tracking every employee’s compensation, hours, and status can be difficult and inaccurate. Employee deductions for federal, state, and local taxes, Social Security, and Medicare can be confusing. Before hiring, these taxes must be properly set up. Payroll companies keep up with changing government rules and file all compliance documentation for employers.
4. Cost savings.
Although businesses that outsource their payroll will incur costs in the form of fees to the payroll provider, this may be a more cost-effective decision than correcting payroll errors themselves and paying the associated fines and penalties.
Get Professional Payroll Services From the Trusted CPA Firm in Orland Park, IL
Enjoy the benefits of outsourced payroll services and save time and money with Elite Accounting & Tax. Call us at 773-582-2700 or schedule a consultation so we can discuss your business’ needs.
