Whether you're a new entrepreneur that just started a business or an already established business, you probably know that managing payroll has its difficulties. Sometimes, even the most experienced business people have trouble keeping up with ever-changing regulations and staff numbers. With this in mind, many are choosing to hire a payroll company. If you're currently facing this dilemma, allow us to explain why you should do the same!
Accountability and Tax Expertise
Did you know that nearly half of all small businesses which handle their own payroll make errors that lead to fees and penalties? Why take this risk and potentially leave your business in financial trouble when you can have professionals look after payroll instead? Not only do they know how everything works, but they also stay abreast of all regulatory changes, making them less likely to make mistakes.
Over the years, we've seen people say the following: "Well, even if the service does make mistakes, it's still us that has to pay the price." This is a great point, but more and more payroll companies are now offering a guarantee so you don't pay for their mistakes.
If the IRS spots an issue with the tax filing that comes from your payroll, the service will take responsibility. With all things related to tax, we think it's better to err on the side of caution anyway; imagine the peace of mind that comes with having a professional handle all the paperwork and filing.
If you've tried to handle payroll yourself, you know how time-consuming and frustrating it can be. After hiring a payroll company, you won't have to deal with this sort of thing, and you have more free time to help employees, communicate with clients and perform the tasks for which you were initially hired. Whether you're a manager or owner, you can add more value to the business rather than sitting behind a computer trying to make sense of deductions, allowances, and taxes.
In addition to the help you receive with payroll, we also love to recommend payroll companies because of their ability to provide financial summaries, timesheets, payroll-per-department reviews, earnings statements and more. In an instant, you can review whatever information you need, and then use this to make stronger business decisions.
Let's not forget to go through payroll alone, you would need to invest in software and other technology. With a payroll company, they have several other clients like yourself, which means they have the industry's best technology implemented already. Therefore, you're paying for:
●access to high-quality tools and resources
●a reduced chance of mistakes and errors
As you've just seen, you'll have a team of happy employees. Why? Because they get their pay as expected: on time and in full. For employees, there's little more frustrating than chasing down mistakes related to pay. Of course, many have families to feed and bills to pay. Hiring a payroll company helps minimize pay-related complaints, so employees remain motivated.
As our final reason for hiring a payroll company, we return to the idea that these services have numerous clients across a wide range of fields. With this, they're accustomed to dealing with sensitive information and have security procedures in place to protect your information.
On this note, remember to choose a payroll company with experience, a positive track record, and reliable customer service. If your chosen service works as hard as you, it will be the perfect match as you both grow together!