Managing small businesses requires cost-effective growth maximizing strategies. This involves:
- Resource planning
- Identifying inefficiencies in daily tasks
- Taking corrective measures accordingly.
For small businesses, payroll management is one the most challenging and time consuming activities e.g., keeping track of payroll tax deductions and timely disbursements. Often viewed as a task management function, payroll management if not executed properly can have unintended consequences for a business, such as incurring IRS penalties and massive employee dissatisfaction.
To avoid these issues, many businesses rely on payroll outsourcing as a preferred best-practices solution. To understand the benefits of how payroll outsourcing enables business growth, below are some of the potential business benefits:
This is one of the primary reasons why small business owners should consider payroll outsourcing. A bottom-line friendly payment provides you with the full benefits of a powerful integrated payroll suite. This helps you to reallocate your resources to marketing and brand promotion strategies. It can also cut down your admin costs, as you minimize the need to employ an entire payroll department or process payroll yourself.
2. Accurate Payroll Calculation
Nothing annoys employees and affects their productivity more than incorrect payroll calculations and disbursements. Payroll calculation is a complex procedure and requires strict compliance with payroll taxes and employment laws.
Payroll outsourcing efficiently mitigates the risks associated with non-compliance of payroll taxes and associated employment laws. Integrated payroll software packages are continually updated with respect to applicable tax and employment law changes. This provides:
- Accurate payroll computation
- Timely payroll disbursement
- Adjustments of any paid leaves or any other contingencies on a timely basis
- Reliable data for audit and quality control review
- Your employees with plenty of insurance/retirement options to choose from.
3. Tax Compliance
Your payroll process does not end with salary disbursement. Tax returns are required to be filed with the IRS. Any discrepancies in payroll tax calculations or delay in payment result in penalties. Furthermore, tax laws are complex and require research, interpretation and consulting.
Payroll outsourcing, in this regard, ensures:
- Compliance with all tax regulations
- Accurate income tax calculation
- Timely preparation and filing of tax returns
4. Easy Accessibility
Cloud based payroll suite solutions are designed to be compatible with the most advanced mobile technology platforms. Your employees can directly access their payroll accounts from their smart phones if they need to make any changes (for e.g. banking/account number changes). Similarly, you can easily view individual payroll data and identify any inconsistencies or discrepancies.
5. No Expertise Required
Though outsourcing, your payroll system is complete and comprehensive. Periodic payroll reports aid in strategic decision making. Employee productivity, performance evaluation and appraisal, and other pertinent matters can be evaluated without employing additional expertise.
It is necessary to utilize the services of a quality payroll outsourcing agency to reap all the above mentioned benefits and view payroll processing as more of a strategic management function vs. a task management function.
About SimpleX Payroll
SimpleX Payroll is a full-service payroll company that specializes in delivering unparalleled service standards to small-medium sized businesses in all 50 States. SimpleX Payroll is built on providing a cloud-based all-in-one premier Payroll Processing Suite that includes Employee Time Management & Attendance, Unlimited Custom Reporting, Calculating Taxes, Accounting & System Integration features.