Payroll

Advantages of Outsourcing Payroll

July 6, 2022

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Did you know majority of American businesses are outsourcing some portion of their payroll? If you run a company and never seem to have enough hours in the day to get it all done consider outsourcing your payroll. Instead of spending hours checking overtime, salaries and vacation, you can outsource this cost of doing business to an outside company. Keep reading to find out if outsourcing your payroll is right for you and your business

Why should you outsource your payroll?

Outsourcing payroll is a common practice amongst many businesses. Outsourcing payroll effectively helps businesses.

  • Save on costs
  • Increase efficiency
  • Gain competitive advantage

By outsourcing a necessary task this will allow your employees to focus energy and concentrate on their work. Outsourcing payroll is more efficient because you have a team of trained professionals churn out your payroll in a timely manner every month. 

Outsourcing payroll will allow your company to work more nimbly. This will make your business more flexible and adaptable to any market changes or hiccups as your company will not have to work through this on your own. Saving money, time and increasing productivity are all positives of outsourcing payroll. 

Some business owners may consider outsourcing payroll as a risk. This is why it is extremely important to find a reputable and knowledgeable payroll company.

What does outsourcing your payroll mean?

Now we know why a business should outsource its payroll, let’s dive into what this process actually looks like. 

Your business will need to find a knowledgeable and fully insured payroll company. This service will need to handle administrative and compliance dealing with employee pay and your business payroll tax payments and filing. Employee pay will run smoothly every pay period and be a weight lifted off of their shoulders. Also in today’s world payroll and HR come hand in hand. When you are outsourcing payroll you should also be outsourcing key HR functions such as paperless onboarding and an HR support line such a Journey’s HRNOW.

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Advantages to outsourcing payroll

Here are a few more advantages to outsourcing payroll

  • Removes liability
  • Ensures compliance
  • Prevents mistakes
  • Enhances security
  • Decreases paper usage
  • Saves time
  • Uniform reporting
  • Minimizes expense
  • Increased responsiveness
  • Employee self-service
Related:  The Lowdown on Payroll Records

When should you outsource payroll?

At what point should a company outsource payroll? Should they do it from the jump as a startup or wait until they are a massive business mogul?

Once you are paying even just yourself through payroll you are instantly liable for local, state and federal tax deposits and filings at which then point we, along with the majority of accounting professionals, recommend signing up with a payroll company.

What are the disadvantages of outsourcing payroll?

Prior to outsourcing your payroll, take time to consider disadvantages. Here are a couple:

  • Cost. Over time the cost will end up saving you valuable time and effort which can end up saving you money in the long run.
  • Confidentiality threats. Insure you are with a company that take security seriously and you and your employees information is not available to every employee in the organization.

The right payroll company will work with your business to mitigate fears and ensure that the pros will outweigh the cons with the new payroll system.

With Local Ownership and Amazing Service, Journey Payroll & HR is here for you!

The #1 complete payroll solutions for business owners. Anyone can sell the idea that they’re the best. We actually care more about delivering than selling, and we have the industry leading retention of 98% and local ownership to prove it. Our sales leaders are owners, or on a expedited path to become an owner. That’s right, no commissioned sales people, to ensure we only bring on the right clients, in the right way. We cover all industries, in all 50 states, and our goal is to educate to earn business, not to sell.

Related:  Voluntary Benefits: What They Are and Who They're For

If you are looking to outsource your payroll and or HR let us help!


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