Posted by : Amanda Stein Tuesday, October 15, 2013




Payroll for most companies today involves far more than simply writing checks based on a journal. It now involves complex tax law, potential deductions and multiple payment methods. Maintaining the staff, software and expertise to successfully perform payroll is becoming burdensome. One solution is to outsource payroll to a third-party provider. There are five reasons why outsourcing payroll is a savvy business decision.


Minimize Mistakes

Outsourcing payroll can minimize mistakes that could result in costly penalties or other problems later. Payroll providers have the expertise to accurately calculate wage payments, taxes and garnishments due to legal issues. The providers are constantly updating software, formulas and the knowledge of staff to keep pace with the changing laws in different jurisdictions. This can eliminate mistakes that are common with new in-house payroll specialists.


Lower Costs

Performing payroll within a business requires investments in labor and equipment. In-house payroll systems must be purchased and integrated with existing accounting or time tracking software. Payroll specialists must be hired who perform only payroll and no other tasks. Additionally, performing payroll every week can require help from essential support staff or human resource staff. Outsourcing payroll will lower costs even as the company grows.


Save Time

Payroll is not a simple process. Businesses that handle payroll internally must dedicate a large amount of time to calculating payments, taxes and deductions. Employees could even have inquiries or other issues that consume additional time. Outsourcing to an experienced company like ADP.com that has online tools for businesses, knowledge portals and a large staff can help to save time within the business. Employees can focus on important areas that contribute directly to success such as marketing or sales.


Offer More Employee Services

Outsourcing payroll benefits employees because more services and options are available. Outsourced providers can supply payments through checks, direct deposit or even personal debit cards. Some providers have online portals or apps that allow employees to check on current earnings without having to bother human resource specialists. These payroll providers are always updating what is available so that employees will have access to new services as demand grows.


Handle Complex Situations Seamlessly

Payroll can become incredibly complex especially when dealing with employees in different areas who have different employment statuses. An outside payroll provider can seamlessly handle contractors, full-time employees and per diem employees without burdening the business. The provider also has the tools necessary to handle employees in different states without requiring the business to take any special actions. This simplifies payroll for companies expanding into new areas.


Author Bio: Hayley is a freelance blogger, author and business consultant. Away from the office she enjoys spending time with her two young daughters and husband.

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