( read )

Should You Outsource Payroll to a Third Party?

By Cassidi Heltcel, CPA

Are you ready to take your business to the next level and outsource your payroll? Step back for a minute and consider how important this activity is to the company's future. We know that you value your employees as your biggest assets. You owe it to them to ensure that they get paid on time.

Many small business owners like you want to save money by doing it themselves, but they don't have the time to learn the intricacies of payroll. We do more than just bookkeeping. The hours that it takes to learn payroll would be better invested in hiring and training staff or servicing your biggest accounts. 

Food for Thought

If you want to reward employees for the contributions they make each day, look into payroll management. It's easy to outsource this standard business process.

There are the latest IRS guidelines and changing guidelines for deductions from each employee's check, including those for insurance and benefits providers, retirement plans, and state worker's compensation programs. Some states and local governments also have income taxes.

With outsourcing as a reliable solution, your company will focus on the business activities directly related to delivering your core products or services. If you aren't convinced, here are 6 reasons why you should:

1. Use staff more efficiently by letting us handle payroll and the associated legal details.

People may have assisted you with some HR functions in the past, but they can take on leadership and training rolls instead of keeping the books.

2. Reduce overhead by removing the need to hire specialized employees.

You don't have to have an HR expert on staff for this function, but you might need one for hiring or other HR activities.

3. Save time (which translates to save money!).

With outsourcing, it's easy to eliminate the burden of customizing, updating, and maintaining your own payroll system. We assume all the details, which means no more data entry, no more researching updates or new laws, and no more worries.

4. Get free payroll tax filing.

Your company can eliminate the risks of calculating and filing your own payroll taxes by having our tax professionals do the dirty work for you. We know that payroll taxes are affected by frequent changes in federal, state, and local tax laws, which don't always agree with each other. You don't have time to learn these rules each year while you're trying to build a company.

5. Focus on core competencies.

This means that you have other business functions such as research and development, production, distribution, sales, marketing, and customer service to assign employees to, especially because these give value to consumers.

6. Maintain accountability with extra services.

There are other accounting functions that you might need related to payroll or operating a business. We are happy to provide more services for a small fee. These might include generating union reports, certified payroll reports, worker's compensation reports, and much more.

As a business owner, there are many things that require your attention.

  • You want to write job postings to recruit more staff. 
  • You should inspect your facilities and plan how to expand them for new employees to have enough space in which to work. 
  • You always need to create new marketing strategies and update the company website.
  • Your employees need you to monitor inventory levels and order supplies.

If you haven't kept up with the bookkeeping tasks in your company, there's no need to panic. We're here to help! We'll prepare your bookkeeping for the year, prepare a full Schedule C, and create your personal income tax return. Then, we'll gladly help you set up an easy system to keep the books in tip-top shape next year.

For more details on payroll solutions, please contact us today.