Companies come in all shapes and sizes with different cultures and goals, but one thing is certain: every company must deal with payroll. Taxes are tough for any company, and managing the ever-growing list of regulations, all while ensuring employees get paid on time, can be daunting. This is why payroll outsourcing is such a popular choice for companies of all sizes.
Whether it’s managing payroll for five employees or 500, payroll outsourcing can bring benefits to almost every company.
Many small business owners worry that they can’t justify the costs of outsourcing payroll for a small number of employees. While a lower number of employees may mean less work for payroll, that work is also much more of a burden on a small team.
HR professionals estimate that they spend up to 17 hours a week on routine tasks associated with payroll. For a small business with a small HR department, payroll is a huge time drain and pulls employees away from tasks that could help grow the company. This problem is even more severe for businesses where managers or the business owner handles most administrative tasks. Instead of focusing on the core business, people critical to a company’s success often end up in a tangle of routine paperwork.
Payroll outsourcing allows small businesses to focus their talents on the actual business rather than administration. Outsourcing also eliminates mistakes that can hold up the payroll process or produce an incorrect filing with the IRS. With a payroll professional on the job, employees get paid on time without costing the business wasteful IRS fines.
As a business grows, payroll administration becomes much more complex. Larger businesses must be concerned about overtime, freelance workers, employees in different states, and additional taxes. These complications can quickly overwhelm even the most competent of HR departments.
Large companies eliminate the need for a payroll department by outsourcing payroll. Companies that offer payroll services are experts in regulations for all different types of businesses, enabling them to handle new regulations with ease.
Outsourcing payroll allows companies of all sizes to continue growing without the burden of added administration. To learn more about how LBMC Employment Partners can help your company with payroll outsourcing, contact us today.
