Benefits of Outsourcing Payroll
Payroll is a vital process within a company, and is too often thought of as just another tedious and time-consuming task. Many organizations find that outsourcing payroll is an effective way of turning extra work on someone’s desk into a beneficial tool for the company. In fact, Inc. magazine recently identified the #1 task for small business to outsource is payroll, along with most accounting tasks. Doing so leads to higher accuracy, lower costs and peace of mind:
- Higher Accuracy. The payroll process includes employee information, salary and hourly pay, benefits, deductions, taxes and many more components. After adding in the changing landscape of regulations and legislations involved with payroll, it is difficult to see how a small business could manage payroll effectively. Outsourcing payroll insures that experts, paired with latest technology, are giving the company and employees accurate payroll management. While every company requires unique payroll functions—the third party has the ability to grow with the company and its needs.
- Lower Costs. There is a common misconception that it is much more cost-effective to have a current employee simply do the payroll. However, this may not be the case. Among other things, a company needs to consider the cost of training an employee, paying for the payroll program, and the opportunity cost associated with keeping payroll in house. In a survey completed by the NSBA, about 23% of small business owners spend six or more hours on administration of payroll (NSBA). Outsourcing payroll increases accuracy and limits the risk of incurring expensive penalties due to payroll mistakes.
- Peace of Mind. Payroll compliance, benefits regulations, and HR laws can be confusing. They’re always changing, and even the smallest misstep can lead to steep fines. By joining an all-in-one platform such as Gusto, you’ll be guided through the complexities of each regulation that impacts your company. They proactively keep you updated anytime a law changes, and even automate most of the compliance tasks for you. Their refreshingly intuitive software helps you check off all your administrative tasks as quickly as possible so you can spend more time on strategic projects.
Gusto is a refreshingly easy payroll provider, built for small businesses. They currently partner with 40,000 small businesses to personalize an outsourced payroll system for each customer. Their automated system has led to customers saying that it is an easier payroll solution than other platforms, having an 80% decrease in errors and spending 75% less time associated with payroll. Signing up for Gusto is easy – just click here!