You want to do everything for the success of your growing business. But there are only 24 hours in a day and seven days in a week – and burning out as the result of working too many of those 168 hours – yup, do the math! – is counterproductive, unhealthy and just plain unrealistic. So, why not consider outsourcing two critically important, yet non-core, functions: payroll and benefits administration?
- Payroll and benefits are essential functions, but they’re not profit centers for your company. Done well, they can enhance your reputation as an employer, which is critical in today’s candidate-driven job market. But they eat up time, energy, expertise and staff resources which could be better spent elsewhere.
Three Reasons to Outsource
By outsourcing payroll and benefits, you can:
- Free up time and resources to focus on your core business. Neither payroll, nor employee benefits, directly impact sales or customer service. But if they are carried out poorly, they can cause serious problems for your business and your brand image. In addition, they can quickly drain time and energy away from your core activities. For example, outsourcing relieves you of the pressure of keeping up with the wide range of local, state and federal laws with which you need to comply. Or, if you get an unexpected notice from the IRS to address a payroll issue, your outsourcing partner can spend hours combing through records and help you defend your company against a potential infraction.
- Have access to the latest technology and expertise. Did you know that employers have to deal with almost 10,000 taxing jurisdictions across the United States? Of course, your company doesn’t have to comply with all of them, but this statistic illustrates the complexity of these employment laws. And, to make it even more challenging, they tend to change every year. As your business grows, you’ll have more records to keep and more reporting to do. It goes without saying that reliance on the latest technology is essential for you to operate successfully. Furthermore, your employees expect the latest technology when it comes to their compensation and benefits. Unless you can provide such options as direct deposit and self-service access to benefits data, you’re at a competitive disadvantage.
- Lower cost and risk. Studies have shown that on average, businesses are overpaying employees by about four percent, due to differences between their workers’ time and accurate time records. And, the Internal Revenue Service estimates that 40 percent of small businesses pay an average penalty of $845 per year for late or incorrect filings. This adds up quickly. Your outsourcing partner can help minimize this risk.
If you haven’t considered outsourcing before, maybe now is the right time for your business. If so, consider contacting Lyons HR. We’ll serve as a seamless extension of your company, providing comprehensive payroll and benefits administration and reducing related employment risks. As an added plus, we’re an accredited PEO, so our buying power can enable you to offer better benefits at lower costs than you could negotiate on your own. Read our related posts or contact us today to learn more.