Businesses of varying sizes can realize benefits from hiring payroll service providers. Small businesses in particular can benefit since the process can be time-consuming and complicated. It is perhaps more common than most realize because more than 10 million businesses already outsource their payroll. There may be many reasons for this choice. Here are the top four reasons most businesses give for hiring payroll service providers.
Pay periods can demand a lot of time and attention, no matter how small the business. It’s not as simple as crunching a few numbers and cutting a check. There can be huge amounts of data to enter and plenty of double checking for keying mistakes. Critical tasks like building revenue or serving customers must be sacrificed many times. Outsourcing allows businesses to focus on the things that are necessary for day-to-day operations instead.
The IRS has numerous rules and regulations to be adhered to when it comes to paying employees. Outsourcing shifts the responsibility of legal compliance to payroll service providers. Approximately 40 percent of small businesses in the US pay IRS penalties each year for improperly filing payroll taxes. A professional is less likely to turn in inaccurate paperwork to the IRS.
Even though most employees are trustworthy, there is always a risk of embezzlement, theft or tampering with the records to make a personal gain. Payroll software companies are often not well-established, leaving them to be bought out by other companies. Another consideration is the safety of all the data that goes with payroll. Is it safe on the company server? Experienced providers can provide enhanced security for information stored; it’s actually part of the service.
Payroll service providers employ individuals who understand the complexities. They are trained on how to figure taxes and how to maintain compliance with government regulations. These are services that are provided and guaranteed.
Are you ready to put your payroll in the hands of professionals? Visit the Innovative Employee Solutions website to learn how their payroll service providers can help your business thrive.