Debunking Myths: Outsourcing Payroll

Debunking-Myths-Outsourcing-Payroll

Processing payroll can be complicated and frustrating, and that’s not even taking into account all the legal and federal regulations intermixed with calculating important employee information. When considering outsourcing your payroll to a specialist, it’s crucial to have a full, comprehensive understanding of what services are provided that will be of benefit to your business.

With so many false claims and misconceptions floating around, we’ve decided to debunk the top four myths surrounding outsourcing payroll in order to help give your company a jumpstart into streamlining your process for success.

Myth 1: Dealing with payroll in-house is less expensive than outsourcing.

When opting into the manual process of payroll, one might believe the DIY method is the most cost-effective solution. However, while manual processes might seem like the less expensive method compared to its outsourcing counterpart, when not an expert in processing payroll and its constantly changing tax brackets, regulation updates, etc, you are subconsciously opting into a bevy of potential, very costly, mistakes that can lead to a host of penalties and fines. 

 

Adding insult to injury, far too often the most common financial expenditure in a company is not tracking and analyzing the expenses associated with the act of manually processing payroll. The time devoted to tracking employee hours, overtime, accruals and more can easily add up to a full workday depending on how many employee time cards you must manually calculate, verify, re-check, and so on. 

 

Myth 2: Payroll is just hourly and salary wages

Setting up payroll is much more than calculating hourly and overtime wages. Processing payroll means managing: employee information, PTO, accruals, withholdings, benefits, legal and federal compliance, and more. 

 

Another incredibly crucial element to processing employee payroll is the year-end tax calculations that abide by strict deadlines. Missing these key dates can yield unfavorable penalties for your company and can quickly offset any steady and hard-earned growth. 

 

Myth 3: Payroll Companies Don’t Work with Small Businesses

Payroll-Companies-Dont-Work-with-Small-Businesses

Being labeled an expert in all features that encompass a successful business is a tall task, especially for any start-ups or small businesses. By engaging in a relationship with a payroll vendor, you’re enlisting the help of specialists and professionals that dedicate their careers to knowing the ins and outs of federal laws, government regulations, compliance updates and more. 

 

While this myth might have held ground a few decades ago, most payroll software providers are highly knowledgeable with a variety of scalable solutions. Companies like FastPay work with businesses all over the United States from small start-ups to companies that employ hundreds of individuals. 

 

Myth 4: Outsourcing payroll means never having to look at payroll again!

As much as we would love to envision a world where we can give someone a task and trust it will be completed with 100% perfect execution, that reality isn’t in the cards for most business owners. And truth be told, staying knowledgeable about your business’s efficiency and expenses is a best practice everyone should adopt. 

 

So, while outsourcing payroll takes a heavy burden off the shoulders of your HR team, aligning your payroll processes with a company that provides detailed analytics and communication is pivotal in ensuring your company stays aligned with their business objective.

 

By allowing a specialist to take the burden of payroll off your shoulders, you’re freeing up time and attention for you to cultivate and grow your business the way it was meant to be. Outsourcing payroll is one of the most cost-effective and readily available solutions available for your company. 

 

Learn more about how automating your payroll can save your company time and money with our free eBook The Ultimate Guide to Payroll Automation.

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