In today’s quick-paced business landscape, companies across all industries need to take a dynamic approach to human resources (HR), and payroll in particular. Payroll is much more than an annoying bimonthly headache — it’s how you reward and show appreciation to your employees for all the hard work they’ve accomplished. In addition to the pressure of making proper calculations, there is a multitude of tax codes and payroll regulations that weigh heavily on you.
A simple mistake could be extremely costly, and having a strong team behind you makes all the difference. However, not all businesses have the proper budget to hire a full-time team of staff for in-house processing. Plus, navigating tricky issues typically requires the knowledge of meticulous and experienced professionals.
Fortunately, there is plenty of resources available to you for outsourcing your payroll services. Recent research by Deloitte shows that the HR sector has seen some of the highest levels of growth in outsourcing. Over half (52%) of leading companies across the world are currently outsourcing HR, and 88% are planning to maintain or increase their levels of outsourcing.
The benefits of hiring a payroll services company are significant. Management will gain back precious time when not burdened with payroll, tax and benefits paperwork. You can reallocate the money you’ll save to core business activities and growth initiatives. Plus, you’ll take the burden of compliance and accuracy off your shoulders, and your data will be more secure.
Follow along with us. In this article, we’ll cover the 4 key reasons that you should outsource your payroll today.
1. Outsourced payroll creates more time for business needs
Despite how large or small your organization is, you will always require payroll processing. The job only becomes more significant and more demanding as your company develops, and the size of your team grows. On average, a small to medium business owner will spend up to 25 percent of their time on employee-related paperwork. Each pay period will quickly become overwhelming with the amount of time spent triple-checking your calculations to confirm you have not made any errors.
The time you spend scrutinizing over every detail is time taken away from the core tasks you need to develop your team, implement new ideas and position your company ahead of competitors. Free up that time by outsourcing your payroll activities. All successful managers understand the power of delegation.
Even if you own a larger enterprise and you already have an internal HR team, outsourcing payroll can still be very advantageous. Your team will save precious time — especially during the busier times of the year — and can focus on other HR tasks such as benefits and compensation, employee engagement, training and the lengthy hiring process.
2. Save costs by outsourcing payroll
Performing payroll services in-house significantly increases financial pressure, especially for small and medium enterprises. In addition to an able team and proper office accommodations, you also need special payroll processing software and cybersecurity technology to protect private employee data. HR services are already costly. A recent Kaiser Family Foundation Employer Health Benefits Survey found that average family health insurance premiums have grown twice as fast as wages and three times as fast as inflation.
When you outsource payroll, you have a skilled and experienced team at your disposal. The payroll processing firm will likely be using the latest and most efficient technology that will save you money by streamlining otherwise time-consuming tasks such as payroll, benefits, and compliance. Saving costs will help to increase your margins and maintain profitability.
Overall, the time you save is money saved. Contemplate the time required for the following tasks:
● Calculating payroll each period
● Generating paperwork and receipts
● Distributing paychecks
● Payroll tax paperwork
● Software maintenance
● Keeping up with tax laws
● W-2s
The list goes on and on. Calculate the time and money you spend and compare it to a few plans offered by payroll service providers. We can guarantee you’ll want to outsource.
3. Outsource payroll to stay compliant
Payroll laws and regulations are continually changing and can be extremely challenging for business owners to keep up with. There are consistently new revisions and updates around tax regulations, and let’s be honest, you probably aren’t exactly an expert in that field. However, falling behind on the latest policies can result in employee frustrations, complaints — and even lawsuits. Plus, you are legally responsible for misrepresentation or failure to accurately report employment taxes to state and federal government agencies.
Professional payroll service firms have the best devices and talent available to understand payroll processing inside and out. Their team will consistently stay on top of the latest federal and state regulations and changes in tax rates, so you don’t have to. Payroll is what they are trained to do, and it’s part of the insured service they offer. Outsourcing your payroll will give you peace of mind that the job is accurately completed so you will avoid penalties.
4. You’ll have fewer security worries when you outsource payroll
Processing payroll in-house will mean you need strict cyber security measures in place to protect all of your private employee data. You’ll need to avoid hackers and identity theft as well as unauthorized access by the employees handling payroll. The ID Theft Center reported that in 2018, the business sector was hit the hardest with over 500 breaches and over 5.3 million compromised records. Let that sink in for a minute.
In addition to ensuring the software in which you use for payroll is secure, you also need to make sure your server, network and cloud services have no security issues. The last thing you want is to become a target for data theft. Creating top-notch security on-site will require a significant capital investment. By finding a reliable and trusted company to outsource your payroll, you’ll be sure that your data is protected by encryption, secure servers and data backups.
Outsource your Payroll Processing Today
Have a strong team of meticulously focused professionals on your side is never a bad thing. Whether you are a small, medium or giant organization, outsourcing your payroll will give you more time to focus on your business, cut your expenses, ensure you remain compliant and give you a strong sense of security.
With many years of payroll experience under our belts, People Edge Consulting is a trusted outsourced payroll service provider. We have diverse experience across many industries with companies of all sizes in the East & Central African region.
Talk to us today https://www.peopleedgeconsulting.co.ke/contact-us/ and we’ll create a robust, dynamic plan for you to save valuable time and resources while remaining compliant and secure.
