Outsourcing has to have some sort of tangible benefit for it to be worthwhile to business. In the arena of online payroll services, the benefits of outsourcing are pretty extensive. Yet they all boil down to two simple things: time and compliance. As a small business owner or manager of a mid-sized company, is either one more important to you?
You might find it hard to elevate one above the other in terms of importance. You certainly don't want to invest too much time in payroll and other back office functions if your company is already pressed to the limit of its resources. By the same token, you are keenly aware that your business must do everything within its power to remain compliant with federal and state laws. It turns out that both time and compliance are the two biggest reasons people choose to contract with payroll services providers.
Time Is Money, Time Is Expensive
Labor costs make up the largest expenditure for the typical small or mid-sized business. Therefore, it is reasonable to expect companies to keep their labor costs as low as possible. How ironic is it that handling payroll functions in-house is akin to spending time on a task that is only adding to labor costs. Never forget that time is money AND time is expensive.
The small business owner and his or her team are experts at providing the services and products they offer their customers. They are not experts in payroll. By the same token, payroll services companies like BenefitMall may know less about the products and services in which their clients specialize. But they are experts in payroll. It makes sense for the small business owner to let a payroll expert handle those functions so that every member of the company team can focus on their area of expertise.
What many small business owners do not understand is that they actually save money by contracting payroll services out. It is a lot less expensive to work with an online service provider than to hire a complete payroll staff devoted full-time to the task. Some of the money and all the time that would have been invested in handling payroll in-house can be invested elsewhere in the business.
Lack of Compliance Is Costly
Equally important to saving time is the need to maintain regulatory compliance. So often companies are penalized by the IRS and state taxing authorities because of simple oversights that would have been recognized and avoided by a payroll specialist. And make no mistake; compliance penalties can add up to be very costly over time.
Maintaining compliance is no longer a simple task. What used to be a matter of withholding and paying payroll taxes has evolved into a behemoth that includes payroll taxes, Social Security payments, contributions to retirement plans, and health insurance contributions. Employers are tightly regulated to ensure that everything is done correctly. Furthermore, tying all of the compliance issues together are the numerous reports companies must file at regular intervals. Working with a payroll services company eliminates most of the risk of noncompliance.
So What's The Verdict?
What is more important in terms of payroll, time or compliance? There is probably no need to answer the question as both are equally important. At BenefitMall, we can tackle both of these for our clients. Let our experts handle your payroll needs and ensure you stay compliant all while saving time and focusing on what matters most – running your business. Our expertise in the industry, personal touches and holistic approach to payroll and HR give you peace of mind. Don’t worry about being a payroll and HR expert; let us be that for you.