Striking a balance between improving performance and reducing costs is a major challenge for every business. Your business performance and your individual employees’ performance are correlated. Hence, improper payroll calculation and disbursement are likely to be a bottleneck in ensuring employee motivation and effective business management practices.
Maintaining an efficient payroll system is riddled with challenges, particularly for a small business. Unless you have robust knowledge of the ever changing employment and payroll tax compliance laws, in-house payroll processing may not be a cost-effective option for you. In such cases, payroll outsourcing is an alternative your business can consider.
Through payroll outsourcing, you can significantly cut down your administration expenses. This cost-effective technique helps you achieve business growth and employee satisfaction in the following ways:
An integrated all-in-one payroll system does not only calculate payroll, but provides several other HR functions such as:
- Preparing Quarterly and Annual Payroll Reports to the IRS
- Computing Tax calculation for your employees
- Providing Easy-to-fill Tax Return Forms
- Offering Retirement Investment Plan options for your employees to consider
- Devising a system that automatically updates its database every time an employee leaves or a new employee joins
- Adjusting employee payroll for sick leaves, paid leaves and other contingencies
- Keeping up-to-date with all relevant employee and tax laws and regulations
Instead of investing in the often cost prohibitive services of HR personnel or HR Department, your small business can outsource payroll with a bottom-line friendly monthly payment. Outsourcing your payroll often is more economical and costs a fraction of the cost when analyzed against the burden of hiring and providing employee benefits to a staff member to manage payroll.
Better Resource Planning
Since payroll is one of the most daunting tasks faced by small business owners, outsourcing can lead to better resource allocation. The time and costs saved through outsourcing can be utilized in product marketing, customer retention, and other revenue-improving strategies.
Ensures Tax Compliance
Employee/labor laws and tax regulations are frequently revised. Payroll calculated, that is inconsistent with any revised regulations, can result in IRS imposing penalties on your business. Ignorance is never bliss for a business! Outsourcing payroll ensures that your payroll is:
- Calculated in accordance with the recent legal changes; and
- Deposited with the government treasury within the stipulated time frame.
This saves your business from bearing any penalties.
Most of the payroll outsourcing companies provides a payroll system that can easily be accessed through your mobile phone or tablet. Pay-slips calculated in this manner are:
- Free from errors
- Easily downloadable and printable
- Directly deposited to your employee bank accounts, without the use of checks or pay orders.
Your small business, however, can only benefit from payroll outsourcing if your vendor does not require any additional charges/subscriptions for add-ons.
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.