Whether it’s IT, customer service, or manufacturing, it’s hard to ignore the popularity of outsourcing, which is the shifting of operations, jobs, tasks, or processes to an external workforce.
Popular countries to outsource work to include India, China, Malaysia, Thailand, and Indonesia. There are many benefits to outsourcing, including improved efficiency, cost savings, and freeing up internal resources for other tasks.
Payroll is one of the most functions for companies to outsource. If you’re considering outsourcing your company’s payroll functions, keep reading for 5 reasons why you should outsource payroll.
1. It Saves Time
Payroll is a time-consuming process. Every time your payroll specialists get payroll done, it’s practically time to start payroll for the next pay period. It’s very detail oriented, particularly if you have hourly employees working overtime, getting holiday pay, or other types of pay incentives.
Time spent on payroll takes your employees away from other tasks, ones that could be generating revenue or increasing sales.
2. It Saves Money
Huge companies have large payroll departments that can handle payroll. Small and medium-sized businesses can save a substantial amount of money by outsourcing payroll though. If you keep your payroll services in-house, you’ll need multiple people who can do payroll, or else that person will never be able to take a vacation, take maternity leave if necessary, or get sick.
Outsourcing ensures that there’s always someone who can handle payroll, which obviously, can’t be late. You won’t have to worry about finding coverage for your payroll department if employees are out of the office.
3. You Can Ensure Compliance With Government Regulations and Taxes
Government rules and tax regulations are changing constantly. Not only do your payroll specialists have to handle payroll every week or two, but they’ll also have to understand any changes in tax withholdings and schedules.
4. You Can Outsource to Experts
A payroll outsourcing company hires experts in payroll, taxes, and calculating hours and wages. Their expertise is to understand governmental regulations and they know payroll inside and out.
If your company offers a 401(k) or 403(b) plan, that adds an additional layer of complexity to payroll that must be calculated. Check out http://payrollserviceaustralia.com.au/ to learn more about expert payroll services in Australia.
5. It Can Enhance Security
If your payroll services are handled by in-house employees, there is always the confidentiality piece to consider. Employees have to be trusted to keep the salary information of their colleagues private. Sharing this information could prove problematic and impact morale.
Outsourcing payroll can provide secure storage of your payroll information, of your employees’ information, and can ensure that confidential information is not shared with other employees.
Outsource Payroll Today
Making the choice to outsource payroll is a wise business decision to help your bottom line. If you’ve been considering it, these reasons should provide a compelling argument for why outsourcing will be a good choice for your business.
If you want more business resources, especially for start-ups, take a look at some of the other sections of our blog. We have resources for every aspect of your business.