According to a recent survey by Actionable Research, nearly 75 percent of CPAs who serve small businesses felt that their clients “do not have the necessary expertise to handle the demands of payroll processing.” In addition, 68 percent suggested their clients’ time would be better spent working on the number of other strategic demands of their businesses.
What is an Online Payroll Service?
Online payroll services can help support your growing business. It’s not always easy to keep up with day-to-day tasks such as payroll, and sometimes outsourcing is the smart move. Online payroll services can save your small business time and a lot of unnecessary headaches.
Hiring an in-house human resources professional or team of professionals may seem like a viable strategy to keep your employees informed and paid on time, but consider the extra costs associated with bringing on more full-time employees. An in-house HR team will require office space, computers, payroll software, a representative annual salary, vacation time, sick days, and health benefits; multiply this cost by the number of professionals you hire.
10 Reasons Online Payroll Services Will Benefit Your Small Business
#1. Free Up Your Resources
We’ve all heard the saying that time is money, but it especially holds true for business owners who are being pulled in 20 different directions. Spending valuable time tracking hours and explaining the details of your employees’ healthcare benefits is something that requires considerable commitment and time. If you calculate the number of weekly hours you spend on payroll and payroll problems, you may realize you are spending a considerable amount of time on something that could easily be done by outsourced payroll services. The choice to outsource payroll allows companies to spend their time being more productive and profitable.
#2. Reducing Operating Costs
Small business owners need to think like larger enterprises and leverage outsourcing. Hiring new or additional personnel and providing them with needed training can be expensive. And if your payroll department does not effectively comply with governmental laws, rules, and regulations, it could make mistakes that result in fines and penalties. Outsourced payroll service, on the other hand, has a staff of professionals who are trained in all aspects of the law, which ensures total compliance.
#3. Payroll Compliance
The rules and regulations that govern employee payroll are constantly changing. Mistakes can lead to audits and penalties which no small business wants or needs. As noted by ProfessionalEmployer.net, “The IRS estimates that over 40 percent of small businesses in the United States pay penalties of over $800 per year … the result of late or incorrect filing and payments.” Small business owners and entrepreneurs struggle to stay on top of these changing regulations. Professional outsourced payroll services, on the other hand, must stay current with rules, regulations, and changes in tax rates.
#4. Money Saved
Time saved is money saved. Think of the time required for each of the following:
- Calculating payroll each time period
- Printing, signing, and distributing paychecks or pay stubs
- Generating reports for in-house and accountant use
- Preparing and remitting payroll taxes and returns to government agencies
- When evaluated on a per-payroll period or a monthly basis, a time/cost analysis may well indicate the benefits of an affordable outsourced payroll provider.
#5. Enhanced Security
Payroll processing is a complex and potentially risky business operation. Even with trusted employees, there is always a risk of identity theft, embezzlement, or tampering with company records for personal gain. There’s also a risk from using payroll software from companies that aren’t well established and may be out of business or bought by another company in a few years. How safe and secure is payroll data on the company’s server or network? This nagging question can consume a business owner’s energy and attention as well.
Online payroll services can offer a “safe haven” for your confidential payroll data. In addition to redundant backup and multiple server locations, a quality payroll provider invests in state-of-the-art systems for storing and protecting data, simply because it’s part of the service provided to clients.
#6. Direct Deposit
Anyone who has ever been paid while on vacation can attest to the convenience that direct deposit offers. Direct deposit allows your employees to access their paychecks without ever leaving their homes and generally limits the chance for an error or any fraudulent activity. It can be difficult for small businesses that don’t outsource their payroll to offer direct deposit.
#7. Updated Technology
Not many companies, large or small, have the latest tax tables and payroll software. When you choose to use outsource payroll services they will always have the latest and greatest technology available to them. This saves you the recurring cost of having to keep up with constant updates.
#8. Peace of Mind
You can’t overestimate the value of mental comfort. Working with online payroll services will make your job simpler, free up more time for your employees and eliminate all of the headaches that are commonly associated with payroll. Being able to focus on your growing business and doing the things that are most important to you is priceless. Joining forces with a professional payroll company to outsource payroll and benefits puts business owners in the best position to succeed by saving them time, money, and frustration.
Final Thoughts
Payroll is a heavy load of necessity that does not directly contribute to your organization’s core business of serving its customers. Outsourced payroll services can be of great benefit to your business, allowing you to spend more time focusing on other important areas of business that might otherwise remain neglected. At the same time, you’ll be able to benefit from increased accuracy of payroll calculations.
When Should I Conder Hiring an Online Payroll Service?
For many companies, there becomes a time when performing in-house payroll services is no longer a feasible option. Because every business grows at different rates, there is no set time frame for this shift to occur; however, there are some key identifiers to look for when considering outsourcing your payroll service.
- You Are Having Trouble Meeting Financial Deadlines: As your company continues to grow, you will have more and more employees being added to your payroll. At some point, it may be difficult to perform the essential payroll functions in a timely fashion. Failing to meet payroll deadlines not only can cause your business problems with the IRS, but it can also lead to frustrated employees
- Other Aspects of Your Business Are Suffering: As a business owner, your attention is often on multiple things at once. The most important thing for a business owner to focus on is the business’s continued growth. When payroll tasks become the sole focus of the business owner, it may be time to outsource the business’s payroll.
- Your Books Aren’t Accurate: Filing payroll in-house can often leave your books riddled with human error. Not only can this be disappointing for employees, but it can cause issues when filing tax documents.
- You Are Failing to Meet Government Regulations: With payroll, government regulations are constantly changing. If you are struggling to keep up and or meet these regulations, it may be time to outsource your business’s payroll.
Limitless Investment & Capital Online Payroll Services for Small Businesses
It takes a lot of work to make your small business successful. Limitless Investment & Capital is happy to remove any of your administrative burdens to make your life easier. Our outsourced payroll professionals can manage your time-consuming payroll processing and payroll tax-filing so you can focus on value-added and revenue-generating activities. Reduce in-house staffing needs and time spent on tedious tasks. Contact US today to get started!