Handling every aspect that comes with payroll can be difficult for a lot of firms to handle on their own. Payroll deductions, employee classification, government remittances and tax legislation can be difficult to wrap your head around if you’re not well versed in accounting. The good news is you don’t have to—you can hand off the responsibility to an outsourced payroll provider. If you’re unsure about whether or not outsourcing is the right move for your business, check out the five reasons you should consider it below.
1. Cost Savings
You might think that you don’t have the budget to pay an outsourced payroll provider right now. This is especially true if you own a small business. Big businesses can often handle their payroll responsibilities in-house with large payroll departments. But small businesses are the ones that can actually benefit the most: they can actually save money with an outsourced payroll provider. When you hire an in-house payroll clerk, you’re paying that person just for being there, and there are tons of hidden costs associated with hiring, an outsourced payroll provider is only paid for the work that’s done, nothing more. And don’t forgot all the costs associated with printing cheques, filing taxes, bank transaction fees, ,the software, expertise, and equipment needed will quickly add up.
2. Time Savings
You probably already know that payroll is incredibly time consuming. Keeping up to date on current legislature and deadlines and making sure all your calculations, deductions, and remittances are correct takes time—time that could be better spent elsewhere. When you remove this burden from your daily list of chores, you’ll find yourself being more productive.
3. Accuracy and Reliability
With an outsourced payroll provider, you’re guaranteed accuracy and reliability. These providers have experts on staff who know the ins and outs of payroll, legislature, and taxes. Payroll mistakes can anger your employees and your government. But with a payroll provider, you won’t have to worry about errors, and if one rare mistake does occur, the provider is the one accountable for it, not you. Your payroll process will also be more reliable when you outsource. You won’t have to factor in a payroll clerk’s vacations or sick days—the work will be done on time, every time, no matter what.
4. Legislative Compliance
Are you worried about being compliant with current Canadian payroll legislation? When you engage an outsourced payroll provider, you’ll have no reason to worry. Payroll providers are well versed in Canadian employment and tax laws so you’ll always be compliant. They’ll make sure you’re always paying your employees legally and they’ll adjust payroll based on changing laws.
Naturally, payroll service providers are specialists when it comes to anything having to do with payroll. They don’t have to spend their time looking up exceptions, maximums, and limitations or anything in between. They know the laws and they know the regulations. This means you’ll get your payroll processing done in record time. Payroll providers also have technical resources and the technology needed to get things done accurately at lightning speed.
Make the Switch
Using an outsourced payroll provider may not be the best route for all businesses, but it’s certainly beneficial for many. Businesses that outsource payroll responsibilities can expect cost savings, time savings, accuracy, reliability, government compliance and speed. When you outsource, you’ll have the peace of mind knowing that your payroll process is being handled properly, quickly, and legally, so you can relax and finally be worry free. What more could you ask for? Make the switch and see just how beneficial outsourcing payroll really is.