Should I Outsource Payroll? Yes—And Here’s Why.

Processing payroll is complicated; it comes with a myriad of compliance and technical obstacles and can take up a large chunk of your resources, especially for small to mid-sized businesses.

If you don’t have the expertise or capacity to do payroll, delegating those responsibilities to a third party is your best bet in keeping employees happy and your business thriving.

Benefits of Outsourcing Payroll

Giving your payroll duties to someone else not only takes a massive weight off your shoulders and provides peace of mind but also offers several other benefits to your company. Here are six reasons you should outsource payroll today.

It saves time.

Processing payroll requires long hours spent on administrative work, including calculations, preparing pay stubs, generating reports, and dealing with state and federal taxes. Payroll duties also often fall on the shoulders of non-experts, taking up way more time than a specialist requires. Outsourcing this job allows your already-stretched-thin staff to focus on more important matters instead, like helping customers or growing your business.

It saves money.

Outsourcing just makes mathematical sense, especially for smaller companies. Many payroll providers charge per employee, so processing that amount tends to be far cheaper than paying for a full-time, in-house accountant’s salary. Plus, you’ll accrue additional savings on other resources like payroll software, training, and government penalties.

It helps you stay compliant.

Businesses are legally responsible for upholding government rules and compliance, but constant changes and complicated forms don’t make the process simple. A recent Paychex poll found that 25% of payroll users are worried about keeping up-to-date with tax laws and regulations. Plus, with the recent surge in remote employees during the pandemic, staying compliant with varying rules across state lines is no easy feat. A payroll expert helps prevent costly penalties during income tax filing and tax reporting.

Read More: How to Tackle Employee Benefits for Remote Workers

It minimizes errors.

Many companies place the responsibility of payroll on an HR manager rather than someone with a financial background, making room for unintentional mistakes and errors. Even though many companies pay through direct deposit, payroll staff still must verify the final amounts. Not only will mistakes cause your employees to lose trust in you, but as stated above, can result in hefty fines.

It improves security.

Smaller companies rarely have the financial means for advanced technology to use for their payroll processes, but using cheaper software runs the risk of weak security. Payroll providers come equipped with modern payroll programs to keep your and your employees’ data safe and private.

It keeps employee data consolidated.

Third-party payroll companies often provide an integrated employee portal to keep information organized in the same space. Employees can view and print pay stubs, track and request time off, set up or adjust direct deposit, and find tax forms. Accessible, online employee data means no need for outdated recording keeping or cheap apps—just increased employee satisfaction.

Read More: 6 Things to Look for in an Employee Portal

The Answer to Your Payroll Woes

As a business owner, you’re constantly forced to make decisions that could significantly impact the future of your success. Nexus HR makes your decision to outsource payroll a no-brainer with tons of services to make you, your staff, and your employees happier and more productive.

Get help in:

• The preparation and distribution of paychecks
• Quarterly and annual tax filings
• Workers’ compensation reporting
• Fully integrated payroll software
• Prep for full-time & part-time employees and consultants
• Paid time-off tracking

Stop wasting time and resources. Outsource your payroll today.