The Advantages of Payroll

by News Guy on January 18, 2012

(Guest Post)

As your company grows, so does your responsibility to properly compensate your employees for their time and contribution to the company’s bottom line.  Making sure your workers are paid accurately and on time, not to mention the governmental regulations that every business must understand and comply with, can be a real headache, especially for the small business owner.  One in three companies has been charged with a mistake related to their payroll, costing them hundreds of dollars in penalties and fees.

With the tax code becoming more complex every year and regulations changing all the time, it is all a small business owner can do to keep up.  Making sure employees are paid accurately and on time is only half of the payroll challenge.  Taxes and governmental regulations add yet another layer to the complexity of handling payroll.  Do it yourself payroll software is one option, but it takes time to train someone to use it, not to mention an expensive investment in software and printing costs.  Manpower is the most expensive asset for most businesses, so it is a resource best used judiciously.

Fortunately, there is a much simpler, more cost-effective solution.  A freelancer payroll company can save your business both time and money.  By outsourcing payroll, a business reduces liability in compliance matters, as well as freeing up resources that can be better used to build profit.  Compliance with tax codes and accuracy are two of the main reasons businesses choose to outsource payroll operations.  Typically, payroll services offer a variety of services tailored to meet your business’ needs.  Accurate records are kept for tax purposes, employees receive their compensation, paystubs and tax forms in a timely manner, and the payroll company manages the paperwork to make sure that your business stays in compliance with tax codes, saving hundreds or even thousands of dollars in penalties and fees for late filing, withholding issues or other compliance problems.

When choosing a freelancer payroll company, it is important to understand what services you are receiving and what your company’s total cost will be.  Be sure to interview several companies to see which will be the best fit for your needs.  Be sure to clarify such issues as who would be responsible in case of an error, how long reconciling mistakes would take and how much it would cost.  Ask the company for references, preferably from current clients.  Make sure you understand the cost of setting up an account, as well as the prices of services and what your contract will cover.

Payroll doesn’t have to be an accounting nightmare that drains time and manpower away from day to day business.  By outsourcing payroll operations, companies can save time, money and frustration.  A smart business owner understands hiring an expert to handle complicated and time-consuming tasks, such as handling payroll, often reduces the cost of doing business.  The time and money saved every pay period make hiring a payroll company one of the most intelligent investments a small business owner can make.

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