There’s more to payroll processing than just writing checks and handling them to employees. For efficient payroll processing to happen, you need to keep your records accurate, calculate and pay your payroll taxes and also effectively communicate with your employees. As the owner of a small or medium sized business, such responsibilities might rob you of precious time and effort, which can otherwise be spent on core business activities. However, with outsourcing, payroll processing can be greatly simplified and managed efficiently. Here are 7 benefits that you can leverage by outsourcing payroll services:
1. Get more free time
Payroll processing is a time-consuming and tedious process that requires plenty of time and effort, to be done accurately. With payroll processing out of your hands, your staff can freely pursue more important revue-generating and value-added business activities like selling or marketing. In fact, the popular Inc magazine has identified payroll processing as the number one task for a small business to outsource, in order to save on time and cost.
2. Minimize costs
By outsourcing your payroll services to a payroll service provider in India, you can slash the direct cost of payroll processing by half. Even if you have a small business with just 10 employees, you would be spending over $2,600 per year on the direct labor costs connected with your payroll. Outsourcing payroll to India is even more cost-effective that hiring a part-time bookkeeper
3. Evade IRS penalties
Did you know that over 40 percent of small business owners pay an average penalty of $845 per year for incorrect or late payments and filings? With a professional payroll service provider handling your payroll, you can be sure of incurring no penalties, as the service provider will take complete responsibility for penalties, if they do occur. With payroll outsourcing, you will never have to worry about another IRS fine or penalty notice.
4. Provide direct deposits
If you don’t outsource payroll services, then it might be difficult for your company to provide direct deposits. You might have already noticed that your employees want direct deposits. By offering direct deposits, you can also eliminate time-consuming paper handling and the need of reconciling individual payroll checks each month.
5. Do away with payroll nightmares
Manually entering payroll is a nightmare and headache that is best avoided. Payroll processing being a tedious and painful process can cause you additional pain. Outsourcing is a great way to alleviate the pain caused from payroll processing.
6. Avoid payroll investments and technology headaches
With the outsourcing of your payroll, your small business will not have to constantly update your payroll software or taxes tables. You can get stiff penalties by using outdated tax tables. Outsourcing payroll is very convenient and ensures the smooth operation of your payroll.
7. Leverage external payroll expertise
With a business to manage, you may not have the time to keep up with the constantly changing withholding rates, government forms and regulations involved. By outsourcing payroll, your business can tap into the external expertise of professionals.
Try payroll outsourcing today!
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