Everyone looks forward to pay day, but processing payroll can be a major source of stress for a business. Is an outside payroll provider right for your company? There are several profit-boosting reasons to add a payroll partner to help your employees get compensated.
Here are five key benefits of adding a payroll service:
Focus on the business. If a portion of employees is focused on managing and processing payroll, business growth efforts may be stifled. This is especially true if a key employee or the owner is the one processing payroll. By outsourcing payroll responsibilities, everyone can concentrate on growing the business.
Improve accuracy and compliance. Most entrepreneurs didn’t go into business to tabulate hourly time sheets, calculate tax withholdings, or stay current with the constantly changing government filing requirements. Payroll service providers such as Mary M. Hudgens, PLLC specialize in monitoring labor regulations, compliance updates, and the number-crunching that payroll requires.
Lower audit risk. Paying your employees’ federal taxes, state taxes, local taxes, Social Security, Medicare, unemployment taxes, and overtime involves complying with a long list of ever-increasing requirements. Payroll services reduce your audit risk on the front end and provide audit assistance on the back end, all while providing you with peace of mind.
Enhance internal controls. Separation of duties is an important internal control for all businesses. This is usually harder to accomplish in a small company where employees tend to wear multiple hats. Businesses with only one or two people in the payroll department are more susceptible to fraud or embezzlement. Adding an outside payroll service can provide the checks and balances a company needs to stay protected.
Save money. One of the key methods of reducing business costs is adding efficiency. Outsourcing payroll increases efficiencies because payroll professionals need fewer hours to get the job done. These time improvements, coupled with potential savings in penalties and interest, can have a positive effect on net income.
If you are contemplating the advantages of using a payroll service, it may be time to review your situation. Contact us today for more details on our full-service payroll and bookkeeping.