As your business grows, so does the size of your team. Sooner or later, you’ll have to deal with a certain task called payroll management.
Unfortunately, managing payroll is more than calculating wages and issuing paychecks. You also need to adhere to local, state, and federal requirements. When done right, this is a tedious and time-consuming process.
The easy solution to these woes is to hire a payroll consultant. Not convinced yet? Here are the main four benefits of using payroll consultancy services.
1. Lower Overhead Costs
Are you processing payroll in-house? If so, there’s an easy way to see whether this financial commitment is worth it or not.
First, estimate the number of hours your staff spends on managing payroll each period. Then, calculate how much money you pay them for this task alone. Don’t forget to include the costs of payroll software in their pay.
Now compare these costs to the cost of hiring an outsider, such as this payroll consulting service. In many cases, you’ll find out that outsourcing will save you money.
2. Increase Data Security
Running payroll is as risky as it is complex. Even with trusted employees, there’s always a risk of tampering or embezzlement.
The security of your payroll software can be an issue as well. Though most software is safe, the server housing your data may have security flaws. If hackers find out about these flaws, they could steal your identity.
Most payroll consulting services avoid this issue by using cloud-based systems. They also encrypt client data and run monthly scans to protect it.
3. Reduce Compliance Risk
As an employer, you likely have a grasp of annual W-2 reporting. But what about state and federal withholding or reporting unemployment wages?
Reporting requirements are even more complex if you have employees in multiple cities. Any mistakes can trigger steep penalties. About 40 percent of small businesses pay an average of $845 for incorrect payroll filings.
When you outsource payroll, you won’t have to worry about overlooking anything. Payroll consultants are experts in tax law and can file all tax documents on your behalf.
4. Free Up Key Employees
These days, wearing many hats is a valued employee trait. Chances are, some of your payroll staff have other job duties as well.
This is one of those things that can work for a while until it doesn’t. Managing payroll requires a lot of time and attention to detail. If your payroll staff can’t keep up with the workload, they’re liable to start making mistakes.
By working with a payroll consulting company, you can streamline most payroll processes. As a result, your employees will have more time for other projects.
Hire a Payroll Consultant Today!
As you can see, managing payroll is stressful. Hiring a payroll consultant takes some of that stress away while giving you more time to scale your business. Of course, this is only true if you choose the right provider.
Want to learn more about payroll consultant roles and responsibilities? Keep checking out our Finance section!