As a business leader, you only have so many hours in a day – and your priority is on managing those core functions that differentiate you strategically from your competition. While payroll is essential, there are several benefits to be gained from turning it over to a trusted business partner.
Here are five reasons why an off-site payroll service could be right for you:
It frees up your staff resources.
Payroll management can become a serious drain on your staff’s time and attention, pulling them away from core activities.
- Your off-site payroll service can relieve you of unexpected time obligations, such as a surprise notice from the IRS that requires someone to comb through files to investigate whether an infraction has occurred.
It reduces cost.
On average, businesses in the U.S. overpay their employees by about 4 percent due to differences between a worker’s time and an accurate time record. And 40 percent of small businesses pay an average penalty of $845 per year for late or incorrect payroll filings. Your payroll service will help to minimize or erase these and other related expenses.
It reduces risk.
Although not directly connected to increased sales or profits, if payroll is not managed properly, it can have the opposite effect: putting your company at tremendous risk if something goes wrong.
- Businesses today have to comply with a complicated web of federal, state and local laws and regulations. To make matters even more challenging, these guidelines change so frequently, it can become mind-boggling. Your payroll service can ensure you avoid costly errors and dispute resolution processes.
It provides access to the latest technology.
Along with constantly changing rules is the continued explosion of technological advances, which touch every aspect of a business. A good payroll service will keep you up to date in areas including:
- Electronic filing requirements.
- Direct deposit and self-service access to payroll information online.
- Mobile device applications.
It provides access to the latest expertise.
When all is said and done, you need your payroll managed by experts who know the function inside and out. The issue may be a filing deadline, wage and hour laws around overtime, or reporting requirements for unemployment or workers’ compensation, to name just a few.
- There are approximately 10,000 federal, state and local taxing jurisdictions across the country. While you only deal with a percentage of them, it still pays to have someone on your team who understands and can navigate them all.
How can PEO benefit your business?
As an accredited PEO (professional employer organization), Lyons HR can manage your payroll and workers’ compensation functions – as well as benefits, recruiting, risk and safety management, and training and development – and ensure your dollars are properly utilized and dispensed. Contact us today to set up an informational meeting.