Outsourcing your company’s payroll has many benefits. As an owner/manager, using a payroll provider can help reduce costs, save time and ensure your payroll taxes are calculated and applied correctly. Outsourcing also helps keep employees happy by making sure paydays run smoothly.
Is outsourcing payroll right for you? While some companies have dedicated payroll departments, many others have found outsourcing to be a lifesaver! How do you know which option is the best fit for your situation? Here are some things to consider:
How big is your company?
One of the biggest concerns when it comes to answering this question is how many employees your organization has on staff. However, the answer isn’t cut and dry. Small companies like to use payroll services so they don’t need a dedicated payroll department. Larger companies like to use them to maintain consistency and save costs.
Do you need more than just payroll?
There are other reasons to consider an outside vendor, especially if your small company also wants insurance or other services. A robust payroll company can help you navigate and administer the many facets of HR, workers’ compensation and more.
Are your employees exempt or nonexempt?
Exempt employees are traditionally paid an annual salary. Nonexempt are usually hourly employees who receive hourly pay and qualify for overtime. The more complicated the payroll process, the more important it might be to outsource it.
How often is payday?
Another thing to consider is how often you pay your employees. Salaried employees are frequently paid twice a month. Hourly employees might be paid every two weeks or every week. This is something a payroll service can work out with you to be the most effective for your type of business.