<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >3 Reasons Why Payroll Processing Is Important (updated 2019)</span>

When it comes to business, payroll processing might seem like one of the least interesting topics there is—that's a large part of why it's a vastly ignored process. Since it's rarely part of core operations, yet at the same time vital, it's often overlooked when it comes to improvement, efficiency, and risk management.

Generally, both payroll and human resources are the most expensive aspects of business, despite being generally delegated to the background. That means, whether it's exciting or not, it's important for business leaders to recognize the importance of payroll in an organization, and changing the way you process payroll may be one of the most important business decisions you make.

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1. Trim Your Budget

We've already mentioned one of the reasons why payroll processing is important—it's impact on your budget. The amount of time and energy it takes to process every cheque, every expense, every deduction and garnishment, and every remittance is incredible, in terms of time and resources.

A solution that has been appealing to more and more businesses lately is simple—outsourcing. It's often recommended that companies consider outsourcing non-core processes in an effort to trim the fat, and payroll is often number one on that list. When you consider that a payroll service already has the people, the training, the equipment, and the knowledge for the job, it's a route worth investigating. Best yet, you're not wasting your own assets and time—you simply pay a simple invoice and know it's being done.

2. Trust the Experts

Payroll service providers know exactly why payroll processing is important—it's their job. They live and breathe everything payroll, so this means they have access to all the latest and most innovative technology. When new laws are introduced, they’re on top of it. It's their job to remain up-to-date and fully trained and they take that job seriously.

Payroll is too big a job for one person, or in many cases, even a small team of people. With a payroll service provider, you get an entire team of of specialists for less than the price of a full-time worker. In a competitive market where it can be hard to find skilled labour, there's peace of mind knowing that experts are still out there and available to meet your needs.

3. Manage Your Risk

Arguably, the most complex aspect of payroll processing is the legal hurdles and harsh compliance expected of each company. So if you want the real answer to why payroll processing is important, remember—even a small mistake can land you a big fine. Even something as seemingly minor as a misclassification issue can lead to serious class action lawsuits, penalties, fines, and even jail time. That's one of the main reasons why so many companies have come to rely on payroll services—for risk management.

When you deal with dedicated experts who are constantly innovating and keeping up to date, you'll find that your risk of mistakes and errors goes down exponentially. That doesn't just keep employees happy (though it's a major benefit), it keeps the government and legal system happy, too. And that's something you can bank on.

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