With technology consistently propelling us forward, business is always changing. One thing that stays constant however, is the importance of paying your employees.

Payrolling is an essential aspect of any business, and many organizations still choose to manage their payroll internally with their own bookkeepers or software.

Still – things can get complicated. For example, in the U.S – if an organization has over 50 full-time employees, there are a whole set of rules surrounding the Affordable Care Act (ACA) that require employers to demonstrate they offer adorable heath coverage to employees. Similarly, if a business crosses state lines, outsourcing payroll can save an organization a lot of hassle, as tax and labor laws vary from state to state.

Other times outsourcing your payroll can be very helpful is if your payroll changes with every pay period i.e. your company has employees working varying amounts of hours each week, or has a significantly high turnover rate. 

With the variety of outsourcing options available, outsourcing your payroll can have short term and long-term benefits:

1) Cost

Particularly for startups that have yet to purchase payroll software or haven’t hired a payroll team, the immediate savings of outsourcing payroll services can be massive.

When you consider the costs of an employee’s wages – this is significant.

2) Time

Oftentimes, small business owners try to do payroll themselves – This is a detriment to their valuable time.

A recent U.S. survey found that found that among those small businesses owners who handle their own payroll, nearly 30% said they spend 6 hours per month.

It can take a significant mount of time just to keep up with the federal changes to payroll tax requirements. For example, Ohio has a state withholding tax, but it can also have a city tax, school district tax, and municipal tax – All of which are based on the employee’s address, so it takes an inordinate amount of time to research Ohio employees.

3) Security

Processing payroll is complex, but can also be risky. Even with trustworthy employees, there is always risk of identity theft, tampering with records. As well, it must always be considered how secure payroll data is on the company’s server.

In contrast, online or outsourced payroll solutions can act as a ‘safe haven’ for your most confidential payroll data. There are multiple server locations and state-of-the-art systems in place to protect your company’s information.

Want to know more about outsourcing your Payroll and Benefits? TPD can take care of this administrative burden while you focus on growing your business.