Because it is inexpensive relative to the benefits provided, payroll services are frequently one of the first business functions that a small business will outsource to a payroll outsourcing services provider.
Here are the key benefits of payroll outsourcing:
Save Time and Money
A good payroll outsourcing service will have invested in specialized software and trained staff to do the job more accurately and quickly than a business can do it on their own. In addition a payroll outsourcer will keep up with changes to state and federal payroll tax laws that may impact employee pay.
Avoidance of Tax Penalties
Reputable payroll outsourcing companies will take responsibility for accurate and prompt filing of your payroll taxes at federal, state, and municipal levels. Your payroll outsourcer should be willing to act as your agent and respond to any tax inquiry on your behalf. Your payroll service should guarantee their work by accepting responsibility for any fees or penalties due to their error.
Outsourcing your payroll will provide your business an important safety net. Many businesses have relied on a key employee, or book-keeper, for their payroll and had to scramble when that resource unexpectedly left the business. If you have outsourced your payroll you can rest assured that your payroll process, records, and tax history are retained and continually available.