Over the years, payroll providers have adapted to technological advances in order to improve their services tenfold. Hence, a lot of misconceptions about these services may be outdated or simply untrue. Industry experts and magazines such as Entrepreneur are slowly beginning to shed light on the benefits of outsourcing payroll. By separating facts from misconceptions, you can properly evaluate whether the service is right for your business. Keep reading to learn about six popular misconceptions about payroll providers.
1. Outsourcing Is Expensive
Contrary to popular belief, you can actually save money by outsourcing payroll. With a payroll provider, the work always gets done in the most efficient and time-friendly way. When you hire someone in-house, you have extra expenses that you may not be able to afford long-term, such as an added salary and subscription to a payroll system. Hire a competent outside team to do the work for you and the costs will always stay the same.
2. You Lose Complete Control over All Payroll Activities
Using a payroll provider doesn’t have to mean you lose complete control over the payroll system. Some businesses even hire out services to work alongside their in-house payroll employees. A lot of outsourcing companies also allow payroll data to be monitored, edited, and double-checked by the businesses if they so desire. A transparent partnership with your provider ensures that no one is upset or shocked by the time payday rolls around.
3. Sensitive Employee Info Isn't Secure
Whether you outsource payroll or not, there are always risks to storing sensitive data like employee banking information. With this in mind, outsourcing payroll is a lot safer than it sounds—payroll professionals who are trained to keep track of sensitive data follow strict industry guidelines and use professional systems that are built to keep employee info protected. Due to the nature of their business, these teams also use highly protected webhosts in facilities that are completely secure and protected. The same can’t be said for payroll teams who work in-house.
4. Your Services Can't Be Customized
For a payroll outsourcing business to succeed, it needs to understand that all of its clients have a variety of different needs and schedules that need to be accommodated. The most exceptional providers on the market have extra services such as help with Employer of Records, HR assistance, Tax Remittance, T4’s, Claims Management, and more. These companies also adapt their services for international businesses who need a little extra help communicating with government authorities and processing money and taxes.
5. Payroll Calculations Aren't Always Completed on Time
Successful providers commit to on-time payroll processing so businesses can rest assured that payments to employees are completed within the requested time frame. Many people believe that this kind of efficiency increases the likelihood for mistakes to happen. However, the truth is payroll providers often take extra care for this very reason. This last misconception sheds more insight on this matter.
6. No One Double Checks the Data
A payroll service that doesn’t take time to sift through and make data corrections isn’t worth investing in. The most amazing services are diligent in making sure that all payments, taxes, and remittances are in good standing. They take special precautions to ensure any cross-country or global payments are concisely calculated according to tax laws and changes in currency.