What is one thing that all businesses have in common? Payroll.
As great as free work sounds, most employees are not working for free, which means someone has to pay the employees for the hours they have worked.
Processing payroll can be a pain in the neck.
Approving hours worked, inputting data, and double-checking that the numbers are accurate is a very time-consuming task. Missing a payroll tax deadline is costly. What may seem like even a small mistake can result in high costs. Missing a deadline puts money at risk through incurring fines, penalties and accumulating interest. Although processing payroll requires time and high attention to detail, payroll is a function that generates little to no additional income for the business. So, business owners and managers dedicate hours of valuable time and talent into the payroll with little return – except for happy employees of course!
Due to the time burden, often times small business owners will delegate the payroll task to a manager, a spouse, a relative, or other key employees in the business. This frees up some time for the business owner to focus on growing the business.
Delegating this critical task to someone who does not have the proper experience and knowledge can be a risky decision for the business. It is best to leave the handling of taxes, garnishments, deductions, and direct deposits to the professionals.
When handling payroll internally becomes too much of a burden, there are a few options small business owners can take advantage of with an outsourced payroll solution. They may choose to outsource to a payroll company, an accounting firm, or to a PEO. Payroll companies and accounting firms employ professionals who can accurately process payroll. On the other hand, the PEO provides the same level of expertise as the payroll companies and accounting firms, plus more. With a full-service PEO, business owners gain access to added expertise and support at their fingertips.
Small business owners can benefit from outsourcing payroll to the professionals with each option. Some benefits of outsourcing include the following.
1) Focus on growing the core business
Payroll does not directly bring money into the business. So, it is obvious why payroll processing can be overlooked and pushed down the priority list. Catch this before it is too late. Missing critical payroll tax deadlines can cause the business to incur expensive fines and penalties. If employees do not get paid correctly and on time, there is a high chance they will look elsewhere for employment. By outsourcing payroll, small business owners are able to worry less about paying their employees and dedicate more time to growing their core business. They are able to easily save time by removing the high-demanding task of processing payroll.
2) Access to professional support & a team of experts
When payroll processing is outsourced, the small business owner gains access to payroll and accounting professionals – a team of experts with years of experience under their belts. Processing payroll is a multi-step process which can be very overwhelming for business owners who do not have the proper training, experience and knowledge.
As an added perk, some payroll outsourcing companies have an integrated 401(k) plan. Extra benefits show employees that the business owner cares. This is an added perk for both the employer and their employees. Small business owners can benefit from lowering their tax obligations by contributing to a company match. A 401(k) savings plan can be out of reach for some small businesses due to economical reasons.
3) Improved compliance
Outsourcing the payroll function of the business helps to reduce the risk of making a costly mistake. Payroll professionals are dedicated in staying up-to-date with state and federal laws, staying compliant with IRS requirements, and any additional tax rules and regulations that are applicable to the business. This in-depth knowledge of rules and regulations greatly decreases the chances of making a mistake that could lead to costly fines.
4) Ease of use and accessibility
The majority of payroll outsourcing companies use a payroll processing software. This is the hub of the payroll function. A benefit of having access to a payroll software is the added user interface which makes inputting time a breeze for business owners and managers. This also gives employees access to view their personal payroll information, and is another timesaver for the business owner when outsourcing. Employees can access more of their personal information and some questions can be redirected to the payroll company.
How to choose the best company to outsource to?
When looking for a company to outsource the payroll processing business function to, consider the quality of service, the reputation of the company and the price compared to competitors. Although payroll is not a big money maker for a business, it is one of the most critical business functions. No payroll could mean no employees. Find a payroll outsourcing company that has a good track record of taking care of its customers.
Your Business comes First with Focus OneSource
Focus OneSource is Iowa’s premier
Professional Employer Organization. We are the only locally based PEO in the
state which gives us a unique insight into local small businesses. We
understand the stress and loss of critical time that goes along with payroll
processing and additional key functions of a small business, which is why we
help small business owners offload the burden. A relationship with Focus
OneSource means access to timely payroll processing with integrated 401(k)
retirement plans, strategic HR planning and administrative services and Fortune
500 level benefits including:
- Health Insurance
- Dental Insurance
- Vision Insurance
- Life Insurance
- Long-Term Disability Insurance
- Short-Term Disability Insurance
- Wellness Programs
- Employee Assistance Programs
- Flexible Spending Accounts
- Health Savings Accounts
In an effort to help small to mid-sized businesses increase productivity and profitability, we provide our customers the option to choose the services that best meet their unique business needs. Through our a la carte options, small business owners can choose the services that they need at that time. Whether we are selected to assist with payroll processing, the full-service PEO package, or anything in between, Focus OneSource is there every step of the way to help our small business owners succeed!
Contact Focus OneSource and see how a relationship with us can help your small business today! Choice. Trust. Transparency.
Alaina Riley
Marketing & Wellness Coordinator