There are several things a new company will need to place on their to-do list such as selecting a prime location, acquiring a tax ID number and payroll services. Through that messy long list at the top you should place payroll services. Why you ask… well you need to pay your employees of course. Most importantly be sure you pay those employees in accordance with laws and in a timely manner. Payroll is a complex and time consuming process and each country and region has different policies. I have compiled the top reasons why you shouldn’t go it alone when it comes to payroll below.
Advanced technology
A payroll service provider can offer your employees perks that would most likely be difficult for your small business to provide on your own; such as direct deposit, and secure electronic paystubs. In most cases this method of paying employees is common and often expected from employees.
Avoid the hassle
More times than none if you are running a small business you don’t have much time to keep track of payroll on your own. The idea of hiring somebody for the part time work each week doesn’t seem worth it either. Try saving yourself some time an effort of trying to become a payroll expert instead of growing your business. Many companies have found it more cost effective to hire an outside service for all their payroll needs.
Separation of duties
In many small companies where all accounting, money and payroll is handles by just one or two people this leaves much room for fraudulent activity. Fictitious accounts and employees can easily be added without others vigil watch causing misplaced income. By outsourcing the payroll process, you will be able to separate this vulnerable area.
Hiring an expert
Payroll is a tricky puzzle with many pieces. The employer needs to be able to calculate and withhold taxes, track accumulated vacation, watch earnings and withholdings. Just as equally important each check needs to be cut and sent in a timely manner to the appropriate location. As far as the ever changing laws, regulations and needs per country, state and region; a payroll company will be up to date on these.
Go ahead; ask around a few other business owners. You just might be surprised hoe many outsource for all of their payroll processing services.