Typically, when a business starts up, one or two people are responsible for handling every aspect of the day to day operations. They handle the work, the billing, and the payroll. As time goes by, and the business grows, the sheer volume of responsibilities makes it necessary to bring on more people. Eventually, the time comes when the business needs a bookkeeper or payroll clerk. When that time comes, the principles of the business face a decision--whether to hire a full-time, in-house clerk, or whether to outsource their growing payroll needs. Below, you'll find three reasons why an in-house payroll clerk is the wrong choice.
To find out how much a payroll clerk will cost your company, you need to account for much more than their salary. They will need updated software, and the training to use it correctly. To keep up with legislative changes to payroll laws, they will need to attend continuing education classes and conferences which cost money and take them away from the workplace. As they learn your business, and adapt to changing laws, there's always the potential for mistakes--mistakes that can cost you money in the form of fines and back payments. In the end, it can be nearly impossible to put a definite dollar figure on what a payroll clerk can cost you from year to year.
You'll need a payroll clerk long before you have enough payroll work to keep them busy full time. What are they going to do until your business grows into a full time job for them? A lot of clerks fill multiple roles at a business, but this presents its own dangers. Every moment they spend on other tasks is a moment when they're not gaining payroll experience. Those other tasks can also serve as a distraction when they are working on payroll. Having their attention divided between different roles leaves you with a worker that isn't completely focused on any of the tasks they're asked to handle.
Missing in Action
Your payroll needs exist 24 hours a day, 7 days a week. Issues can arise at any time, and somebody needs to be available to handle them quickly and accurately. However, even the best payroll clerk will get sick, take vacations, and move onto other employment opportunities. What do you do when a payroll issue comes up, and your clerk is out of the office for whatever reason? For minor issues, you can probably wait a few days until they get back. What if the CRA is at your door to talk about some payroll discrepancies? How long do you think you'll be able to wait if that happens? Even a full-time clerk isn't an all-the-time clerk.
Outsource for Better Results
Outsourcing your payroll needs to a payroll service provider eliminates all of these issues. The cost of hiring, training, and retaining clerks is shared by all of the clients of the payroll provider, lowering overhead for everyone involved. These service providers have a full-time staff that does nothing but handle payroll needs all day, every day, so downtime or divided attention isn't a problem. And they have support personnel available to you at all hours, every day of the week, so you don't have to worry about being able to discuss important issues with an experienced payroll clerk. These payroll providers give you the service you need, when you need it, while also helping to keep your costs low.