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While some companies manage their payroll functions in-house, other business owners partner with a professional payroll provider for a seamless experience. Payroll can be complicated, and most business owners need more time, focus, and resources to complete essential payroll tasks correctly. Not only does in-house payroll management take up valuable time, but many users are also concerned about keeping current on tax laws and regulations to avoid penalties and fines. Would outsourcing payroll services help your company? Since these responsibilities can be time-consuming and expensive, many business owners are looking to outsource these functions. Below we highlight how a payroll provider can streamline and automate your processes and add value to your organization.
Payroll Outsourcing Benefits
As a business owner, you need a simple and easy-to-use system to automate your payroll tasks and help you mitigate and avoid inaccuracies. Learn about some common advantages of payroll outsourcing and how this approach could make sense for your organization.
Payroll tasks aren’t always easy—whether you have 5 or 500 employees, tracking pay rate, hours, enrollment status, 401(k) benefits, and more can be stressful and erode the time of busy owners. Payroll processing requires a significant time commitment on a daily and weekly basis. These demands are time-consuming, whether calculating payroll amounts or ensuring you remain in compliance with standards, codes, regulations, and laws. Attempting to perform these functions yourself is not as time efficient as outsourcing your payroll services.
Payroll errors or inaccuracies can be costly and frustrating for you and your staff. As an employee, a mistake in state tax deductions can result in a sizable deduction from their paycheck at the end of the year, or missed hours can unintentionally decrease their pay. These paystub inaccuracies can negatively affect an employee, leading to frustration and bitterness.
For you, the business owner, payroll errors can result in fines and penalties for improperly calculated withholdings, tax obligations, and retirement benefits. For example, 401(k) mistakes can be costly, and if your organization miscalculates, you could find your business at risk of being audited by the IRS.
Payroll processing is sensitive; you’re dealing with employees’ personal information. There’s always the risk of identity theft, embezzlement, or tampering with data. When you outsource your payroll functions to a trusted provider, you can rest easy knowing your staff’s data is kept safe through advanced safeguards like encryption, password protection, and dual-factor authentication.
Compliance With Rules, Regulations, and Laws
Your business must be compliant with all applicable laws, regulations, codes, and standards, including Federal, state, and local authorities, as well as relevant safety and inspection standards, EEOC ethics, Federal laws on harassment, paid time off criteria, progressive discipline actions, and drug and alcohol policies. While these rules and regulations might not seem necessary, if you don’t spell them out, you could be subject to a lawsuit. Compliance standards are risk management methods that will protect you and your business from misunderstandings.
Payroll Management Services by Simplifi
If any of the above could benefit your business, consider outsourcing your payroll services. At Simplifi, we provide payroll services for small businesses, medium-sized enterprises, and even large corporations. Our name says it all—our platform is simple and flexible, with a user-friendly interface that caters to your business’s needs. We provide you with the tools to effectively manage your team, from payroll processing to time management. If you’re ready to explore your payroll processing options, connect with us at 215-437-7110.