Managing your payroll can be very time-consuming and brain draining. Rather than spending hours upon hours worrying about payroll, filing W-2 forms and agonizing deadlines, it may be time to look for a trustworthy third-party payroll service that can do the job for you.
According to the Journal of Accountancy, nearly half of U.S. and Canadian companies outsourced its payroll services, and it’s for a good reason. If these statistics aren’t enough to get you to switch, then maybe these three tips will do the trick:
1. Time Saved
Regardless of how many people are employed with your business, tending to anything that deals with payroll will take up a great deal of time.
The next time you do anything payroll related, pay close attention to how much time you’re really spending on it because you will be quite surprised. Third-party services will allow you to invest your time in other expenditures so that you can focus on growing your business. Because of this, you no longer have to worry about signing checks, calculating payroll periods, generating reports or preparing taxes for the government.
2. Avoid IRS Mistakes
According to a recent study done by Bloomberg, the IRS issued more than 6.8 million penalties due to employment tax errors.
Sadly, keeping up with new tax codes and rules can be a real burden on business owners if you don’t have the time to keep up to date. If you make one small mistake, this could lead to multiple visits with the IRS and stiff penalties if found guilty.
A good payroll service provider will eliminate most of these dangerous errors, and even if they do, most will provide assistance until the problem is resolved.
3. Enhanced Security
Hiring an employee to do your in-house payroll process can be a risky venture. Even if you trust this person, the risks are still there.
Countless business owners out there will be more than happy to share their stories about how their employees embezzled money, tampered documents for their own personal gain or found their employee improperly filing confidential documents that eventually lead to identity theft.
Third-party services often have software implemented that can alert you regarding fraud and will also have servers that are encrypted with up-to-date technology, which can prevent hackers from obtaining your valuable data.
Payroll and anything related to it can take up a lot of your valuable time, and if you value every minute you put into your business, it may be time to consider a professional payroll service.