The initial two years of business were fun, exciting, and challenging. From day that you opened your fencing company, you loved going to work. You liked the process of finding new clients, hiring new employees, installing the products that you sold, receiving payments from satisfied customers, and paying your employees. The pace was fast and furious. It made for long nights and early mornings, as well as some very busy weekends.
Two years after that beginning, however, the challenging parts of keeping up this pace are greater than they are fun and exciting. So much so that you have decided that you have to make a change. You have to focus on what you like doing the most and what you are the best at. And while you enjoy the entire payroll process, the fact of the matter is that these tasks can more efficiently be handled by another source. From determining overtime pay for exempt employees to calculating vacation days used and unused, payroll solutions are complicated. Although you have considered hiring a part time employee who can take over the payroll process, your research tells you that it makes more sense to work with a payroll solutions company for these tasks that can easily be handled off site.
Many Small Business Owners Use Outsourced Payroll Providers
In addition to payroll tasks being inconvenient for many owners who want to focus on the task of working for their important customers, one of the potential problems facing a small business owner in payroll processing is that it can be complex, risky, and expensive if a mistake is made.
- When a company makes the decision to outsource payroll one of the advantages is that there is only one report to approve and one invoice to pay
- Approximately 85% of certified public accountants recommend that small businesses employ the expertise of providers who offer professional payroll solutions.
- In addition to payroll services, a payroll provider can offer Human Resources (HR) Management, Earned Salary Advancement (ESA) and Occupational Safety and Health Administration (OHSA) compliance, as well as necessary government remittances.
- Those small businesses with fewer than 50 employees will probably benefit financially and otherwise by outsourcing their HR and and payroll needs.
- It can be especially challenging for U.S.based companies to ensure they are in compliance with Canadian requirement when they are paying their Canadian staff.
- Nearly all companies, regardless of size, can benefit from a payroll processing company that can also provide ongoing HR support, guidance, and experience when dealing with sensitive employment issues.
- Gathering all of the necessary paperwork for end of the year taxes is significantly easier for businesses, both large and small, that use a payroll provider.
- Factoring in the implications for making a costly error, one of the reasons for outsourcing payroll is to avoid potential problems facing a small business owner. Payroll processing can be complex, risky, and expensive if you make a mistake.
- Owners of small- and medium-sized businesses also benefit from a payroll provider that offers employee-access tools such as an automated telephone system and employee Web portal that allows workers to check hours in a pay period and available vacation hours or days.
- Realizing your limitations as a small business owner and making use of outside resources can help you enjoy your job for many years.
- Preparation of taxes and completion of accounting can be particularly difficult for small business owners if they have little experience with keeping financial records.
- A business owners who manage payroll in-house is responsible for totaling hours, performing gross-to-net calculations for every employee, calculating and depositing payroll taxes, as well as preparing and filing tax returns accurately and on time.
- You do not have to work through more than one or two payroll processes as a small business owner to understand that there is a lot more to the process than just cutting the checks.
- Deciding to talk to an outside payroll provider can help you understand both the options and the benefits.
- Are you ready to find a logical way to limit the excessive number of hours that you work on pay day?
- You likely got into business because you felt that you had a valuable product or service to offer to your customers. When payroll solutions prevent you from your initial intend, it might be time to consider outsourcing the payroll process.