For small and medium businesses, one of the recurring tasks that can be time-consuming and complicated is processing the employees’ payroll. Some of the tasks include but not limited to: determining the salary, the withholding taxes, various government and health benefits contributions, deductions for absences, sick leave updates, and a lot more. Due to these facts, there are a number of businesses who prefer to use external payroll services to reduce the cost and work load of their employees.
In a general manner, it is seen that outsourcing payroll will reduce the cost up to 50% if compared to in-house employees. It eliminates some of the “big tasks” such as hiring a payroll manager, purchasing payroll software or systems, etc. Besides, using external payroll support will free up a considerable amount of time which can use to further the development and growth of a business.
Here are the top 5 benefits one business can gain using external payroll services:
1. Gains free time that can be use to develop core activities.
This is one of the main reasons why a number of businesses favor to outsource payroll system. It frees up great amount of time and resources that they can use for other important activities such as creating strategies for the growth of their business, employee performance evaluation, organizing team buildings, etc. The external payroll provider will be the ones to take the daily responsibility of managing any payroll-related tasks, delivering on-time results, and resolving issues timely, if there are any.
2. Prevent headaches.
Manual payroll calculations have been long gone as there are now various ways of automating the system that prepares and calculates the payroll on a single click.
3. Avoid penalties
Late year end tax returns submissions will definitely cost you a certain amount of money. Using external services that will take care of timely submitting tax and benefits to respective agencies will save you from these penalties.
4. Decrease operational costs.
Since using the support of external services, operational costs will be reduced as there is no need to hire and train additional staff or consistently updating to the latest payroll software technology.
5. Peace of mind.
With the legislation consistently changing and updating, processing payrolls are becoming more and more complicated and a need to comply with the current regulations arises. By outsourcing payroll support, businesses will gain peace of mind by not worrying on how to comply with the latest statutory requirements and legislations.