Even though it does not directly influence sales or bring clients through the door, payroll is one of the most important facets of your business. Prompt, complete compensation that complies with local, state, and federal regulation is a process that invites the scrutiny of multiple individuals, from the payee to your HR department to the guys over at the Internal Revenue Service.
It’s also a lot of work – complicated work that requires meticulous attention to detail and dedicated man hours; both luxuries that small businesses are often in short supply of. Outsourcing your payroll can not only save your company a great deal of money, but it can boost your company’s security while keeping the compliance wolves at bay.
Consider these five game-changing benefits.
- Time: With a professional payroll service handling the ledger, you can say goodbye to keeping track of new hires, terminations, PTO, and other assorted benefits. Never pore over another W2 again. Streamline your labor, and redirect hours previously devoted to scrupulous record-checking to growing your business and satisfying your customers.
- Savings: As they say, time is money – particularly for smaller businesses that are continuously juggling limited resources. Outsourcing your payroll can immediately free up labor, making much better use of employees previously assigned to paycheck distribution. Moreover, hiring a third party rules out the need to purchase pricey software packages and the training they necessitate.
- Penalties and fees: Mistakes can be costly. Late or incorrect filings and employee misclassification can land otherwise well-meaning businesses in deep trouble with the IRS. Small businesses are not expertly versed in the myriad rules and regulations that govern business law, but they are responsible for the outcome, nonetheless. Outsourcing your payroll eliminates any guesswork. Payroll services do this day in and day out, and are equipped with the knowledge to navigate complex tax processes and paperwork. Unlike laymen, payroll companies are obligated to stay current with all federal, state, and local tax changes, and many guarantee that they will cover any fines resulting from errors or late payments.
- Expertise: Wage and hour laws, overtime , workers compensation, and form after form from the IRS – there are so many ways that in-house bookkeeping can come back to bite an employer in the wallet. Technology is also moving at an exponential rate, with more than 80% of consumers owning a smartphone. Outsourced payroll services keep up to date on the industry’s technological demands, while serving as an invaluable resource for any questions or concerns your employees may have.
- Security: Using in-house payroll software poses a great risk to employers who may not have access to state-of-the-art security software. By outsourcing your payroll, you can largely rule out worries of hacks or identity theft, and take solace in the fact that your employees’ sensitive personal information is being expertly stored and protected on multiple servers with foolproof backup capabilities.
As an Employer of Record, Maslow Media Group handles all payroll, insurance, tax, and compliance issues for occasional and fulltime freelancers. We protect clients from misclassification of employees and independent contractors per IRS rules governing workers in the television industry. Additionally, we provide Human Resources Management of contract employees and have decades of experience addressing co-employment issues with clients.
If you have considered outsourcing your payroll, we can help.