Payroll administration isn’t a core business function – but it is critical to your company’s success. Outsourcing payroll helps free up your time and resources so you can focus more on your core business. That explains why nearly 40 percent of U.S. companies – more than 10 million businesses – outsource their payroll processing. And even more – 43 percent – outsource their payroll tax responsibilities.
Take a closer look at these reasons to outsource payroll sooner rather than later:
- Save time.
No matter how many people you employ, ongoing payroll management demands a lot of time and attention. That’s time taken away from critical tasks like strategic planning, revenue building and customer service.
- In addition, consider unplanned time obligations. For instance, if you get an unexpected notice from the IRS, you’ll likely have to comb through myriad records and conduct a potentially lengthy investigation. You may even become embroiled in a dispute resolution. Outsourcing not only relieves you of this responsibility, but also gives you access to the expertise and resources of specialists in this area.
- Save money.
Did you know that on average, businesses overpay their employees by about 4 percent due to inaccurate time records? And, according to IRS records, 40 percent of small businesses pay an average of $845 per year for late or incorrect filings.
- Time saved is money saved. A time/cost analysis often justifies payroll outsourcing. Consider the time involved in calculating payroll each time period; printing, signing and distributing pay checks and stubs; generating reports for in-house and accountants’ use, and preparing and remitting payroll taxes and returns to government agencies.
- Enhance security.
Is your payroll data safe? Are you sure? Even with trusted employees, there is always the risk of identity theft, embezzlement or tampering with company records. There are numerous and complex regulations around this private data, including methods of storage and the accessibility of information. You want to trust this information with professionals who have the necessary experience and skill to keep it protected.
- Ensure compliance.
You’re probably not an expert in the complicated world of government tax regulations, but you are legally responsible for any cases of misrepresentation or failure to accurately report employment taxes. In 2016, more than 1.8 million tax returns were audited by the IRS, and 978,564 businesses of all sizes were assessed civil penalties. Professional payroll providers must stay current with rules, regulations and changes in tax rates – and they can help you avoid such threats to your bottom line.
As one of the few professional employer organizations (PEOs) in the Southeast accredited by the Employer Services Assurance Corporation (EASC) and certified by the IRS, Lyons HR can work as a seamless extension of your business to manage your payroll and assure full accuracy, security and regulatory compliance. Contact us today to learn more about our services, including payroll and tax processing, FICA and other filings, time and attendance interface, HRIS and file maintenance, and more.