Business managers must consider cost vs return for operating any non-core business function in-house. A detailed review is required to adjudge the cost and time invested, and the benefits of operating such function in-house versus outsourcing it to specialists. Considering the significant benefits and savings involved, many businesses often outsource Payroll to expert managed service providers. Here are top 5 reasons your business should consider outsourcing your payroll too:
Save time and cost
Ask yourself a simple question, are you an expert in processing payroll? It needs to be processed on a regular basis and involves substantial amount of time. If you are not an expert, it is likely that mistakes are made which not only adds up to the processing time but also possesses legal liabilities and risks. Expert Payroll Managed Service providers like HRWARE specialize in handling all payroll requirements, whether it is for a two-person business operation or a 500 employees’ company and beyond. They charge a flat fee for their service based on employees count which is often much lower when compared to processing it in-house.
Most Small and Medium Businesses (SMBs) do not need a full-time payroll administrator. The Office or Operations Manager process company payroll while managing other job responsibilities. This arrangement works to a certain degree, but also carry a significant amount of risk. Payroll and wages involve multiple compliance and legal rules and obligations that businesses must obey. Is your payroll administrator certified and trained to follow all involved regulations? If the answer is no then you are exposing your business to non-compliance penalties and potential liability threats. Outsourcing payroll can help in reducing such risks as expert Payroll Managed Service providers are required to keep themselves up-to-date with Payroll legal and compliance requirements.
Payroll processing can be challenging with evolving business environments and situations. Payroll calculations are based on multiple different moving pieces. For instance, if a business does not have a proper mechanism in place to document employees time-sheet, they may end up with payment discrepancies. An expert Payroll Managed Service provider is well-equipped to handle simple to the most complex payroll calculations.
Access to Advanced Technology
Many SMBs rely on simple payroll tools which does basic calculation but may lack functionalities to support advance requirements. Since payroll calculation is a dynamic function which relies on multiple factors, even the smallest of businesses may need advance calculation at any point. With outsourced payroll, businesses eliminate that limitation without incurring any additional cost in most cases. Experts service providers are also able to customize service package based on scalability needs.
Focus on Core business
Why bother spending time on managing a non-core business functionality that may not be generating any direct revenue. Most SMBs scramble to allocate resources for core business functions. Experts like HRWARE can process payroll while saving time and cost in doing so for SMBs. Although Payroll does not directly contribute to a company’s bottom-line, doing it wrong has severe consequences. Therefore, it is one business function that has a high return on value when outsourced to an expert managed service provider.