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Running a small business can be incredibly rewarding but it comes with plenty of challenges. One of the biggest demands on small businesses is managing payroll. Many business owners try to handle payroll on their own to save money, but this decision typically ends up costing you in the long run. Let’s take a look at some of the obstacles you’ll have to overcome if you decide to do it yourself instead of outsourcing payroll to an expert.
Time Management
Managing payroll is a time-consuming process, especially when you’re doing it on your own. Small business owners already have a lot on their plate, and handling payroll takes time away from other important tasks that can help the business grow, like marketing and sales.
Error Rate
Payroll can be complicated and complex, and humans are prone to errors. Small business owners may not be intimately familiar with tax laws and regulations that surround payroll, which can result in costly mistakes. Even small errors, like incorrect tax withholdings or miscalculations, can lead to fines or penalties. Payroll management becomes even more complex when working with employees or clients in multiple states where tax and employment laws differ.
Security Risks
Handling payroll requires access to sensitive employee information, like Social Security numbers and bank account details. If this information falls into the wrong hands, it can lead to identity theft or fraud. Small businesses may not have the same level of security measures in place as larger companies, making them more vulnerable to cyberattacks or theft.
Slow, Inefficient Processing
Manual payroll management is often inefficient and prone to errors. Business owners may not have access to advanced technology or software to help automate the process, leading to slower and more tedious progress. If this ends up delaying payments to employees, it can have a significant impact on employee morale.
Legal Compliance
Small businesses have to comply with various tax laws and regulations for payroll management and processing. Failure to comply with these laws can result in fines and penalties. Small business owners may not be familiar with them or they may not have the resources available to ensure compliance, putting them between a rock and a hard place.
Cost
While outsourcing payroll may seem like an added expense, the reality is that it can save you money in the long run. Handling payroll yourself can lead to costly mistakes, fines, and penalties. Outsourcing it, on the other hand, frees up time for small business owners to focus on other important tasks that actually help their business grow.
While handling payroll on your own might seem like a cost-effective solution for small businesses, it comes with plenty of challenges and can end up costing more than expected. When you factor in the costs of your time, the risk of errors, and the potential for fines and penalties, you can see why it’s so expensive. Outsourcing your payroll to a payroll service saves you time, money, and headaches, allowing you to focus on what you do best – running your business.
Outsourcing with Simplifi Payroll & HR
Simplifi Payroll & HR is a leading provider of payroll and HR services, offering comprehensive solutions to small and mid-sized businesses nationwide. Our team of experienced professionals uses cutting-edge technology to deliver accurate and timely payroll processing. With Simplifi Payroll & HR, businesses can avoid the headache of managing payroll themselves and focus on their core operations.
Our cloud-based software allows for easy access to payroll information and reports anytime and anywhere you want them. We also offer flexible pricing options and excellent customer service so you can create a plan that works for you. To learn more about our payroll services, call us at (215) 437-7110. You’ll speak to a live person in three rings or less!
