To control costs, some organizations want to do as much as possible in-house. But here are four smart reasons to consider outsourcing payroll:
1) Save time. Getting payroll calculated, processed, and distributed takes countless hours. Computer glitches, power outages, time off the job, and other unforeseen problems can make it take even longer. Your time and resources can be better used doing what you do best.
2) Reduce liability. Not only is calculating state, federal, and local payroll taxes time-consuming, if a mistake is made, you may be looking at penalties and interest on top of your regular tax burden. The IRS and state tax authorities take payroll taxes seriously. The IRS issued 6.8 million penalties, totaling $4.5 billion, related to employment taxes for the year ending last September.
3) Worry less about complexity. Mistakes can happen, regardless of payroll size. This is especially true when paychecks are just one of many tasks you're trying to juggle. Yet, if you handle payroll in-house, you must stay on top of changes in tax laws, withholding, reporting, and overtime rules.
4) Save money. If you think you can't afford to outsource payroll, you may not be counting all the costs of doing it in-house. How much is an hour of your time worth? How much time do you spend keeping up with payroll regulation changes, handling payroll, making periodic deposits and filing reports including W-2s and 1099s? In addition to the cost of your time, there are computer, printer and check-stock costs.
Add up how much it realistically costs to handle payroll in-house. Then contact a firm experienced in payroll processing, such as Bukaty Companies, for a free quote.