Outsourcing Your Payroll: a no-brainer

Few things demoralize your work force faster and more severely than for employees to find that their paychecks aren't there on time and in full. Managing the payroll can be a tough task with high consequences if you get it wrong. With the added complications of personnel changes, changing tax regulations, and unforeseeable delays, stress becomes a daily companion.

Over a fourth of all businesses have found that the cure for these headaches was as simple as making the decision to outsource their payroll. Outsourcing makes good sense for many reasons.

Saves on Software Costs
No purchase, installation, support, or maintenance of elaborate payroll software is needed, and the payroll company is responsible for the updates. Payroll companies can interface with your existing office accounting system.

Adapts to Personnel Changes
Growing companies can add new employees seamlessly. For downsizing ones, the payroll company handles the layoffs, unemployment insurance, and severance pay. This scalability is especially valuable for companies that hire seasonal help.

Frees Up More Time
Payroll outsourcing allows you to concentrate on your product or service. In the average business, payroll typically consumes one employee workday each pay period. That's eight to ten hours that could be better spent on enhancing productivity.

Improves Efficiency of Timekeeping
Employees can log their hours directly into the payroll company's data base electronically, eliminating the need for timecards and reducing the chance of human error. Managers retain the ability to approve or adjust the data, as needed.

Accommodates Special Circumstances
One-time bonuses, variable commissions, fines and other irregular payments can all be handled by payroll companies.

Allows Flexibility in Form of Payments
You have the option of distributing paper paychecks or of having deposits made directly into your employees' bank accounts.

Shifts Regulatory Compliance Tasks
If you haven't decided to hire an outside payroll company yet, consider this: Payroll services take on the responsibility of covering shifting tax regulations and mandatory withholdings at the local, state and federal levels. They also manage contributions to health and retirement plans. Hiring an outside payroll company is a good business decision for this one reason alone. But there is yet an additional level of protection in outsourcing payroll. The payroll company, not you, will pay the fines if they are not in compliance with the rules and regulations

Some business decisions are easy. The decision to outsource your payroll is one of them.