Frequently Asked Questions
If you've got questions, we've got answers!
Some experts estimate that it costs a company more than $7.00 to prepare one payroll check. Outsourcing allows you to save employee costs, hardware and software costs, printer toner costs, paper and check stock costs and system maintenance and upgrade costs. There are also costs that are difficult to quantify such as training new employees to handle payroll functions.
Outsourcing allows you more time to focus on the most important thing, your business. Your time is valuable and should not be wasted trying to deal with processing your payroll and handling payroll taxes and returns.
There are countless forms that need to be filed in conjunction with payroll. There are also various deadlines to make deposits and to file forms. If a mistake is made a penalty is probable. According to the IRS approximately 33% of employers make payroll mistakes. The average penalty is $500. There are also other regulatory compliance issues such as new hire reporting that provide for stiff penalties if not complied with.
Your risk of having confidential payroll data exposed to an unauthorized individual can be reduced or eliminated.
Adding services such as direct deposit for you employees provides a well appreciated employee benefit.
Outsourcing can reduce or eliminate employees involved in making tax deposits, electronically signing checks, and reconciling bank statements. A third party performing these functions can enhance control and segregation of duties.
Most companies rely heavily on one person to handle the payroll process. What happens if this person abruptly leaves the company? Outsourcing protects your business from this possible catastrophic situation.