When Is It Time to Outsource Payroll?
The answer is different for every organization. Are you willing to spend the time required to calculate wages, deductions, taxes, prepare physical and electronic paychecks, and keep accurate records? Are you able to study current payroll regulations and tax laws, including any changes that occur going forward, and follow them correctly? Does the cost of payroll software, dedicated payroll staff, and training that staff make sense for you? These are only a few of the many areas employers need to consider when thinking about payroll. So, when is it time to outsource payroll?
Let’s take a look at one example. A small business owner named Emily runs an up and coming e-commerce website. In the last year, she has expanded quickly and hired many more employees. As her staff grew, Emily observed that managing payroll in-house has become more complicated and time-consuming. Her employees have differing wages, overtime requirements, and benefit enrollments. Plus, her business spans across several states, all with their own tax regulations. These complexities have caused errors in paycheck calculations and tax withholdings, which resulted in not only frustrated employees but possible compliance violations.
As the holiday season approaches, Emily hires additional seasonal workers to assist with the increased sales volume, leading to an even more demanding payroll process. Emily worries that the extra temporary employees and their own specific payroll complexities will pull her focus away from other essential daily business tasks like inventory and customer service.
As all these challenges build up, Emily decides to look into a payroll outsourcing partner. Emily knows that outsourcing payroll can handle her business’s specific needs, including complex compensation structures, multi-state tax calculations, tax filing, and variable staff size. Plus, Emily is interested in adding an employee self-service portal feature, allowing her employees to access their own payroll and tax information and documents on their own and reduce that time consuming responsibility she used to provide herself.
So when is it time to outsource payroll? It all depends on what you need from a payroll perspective, and BASIC Payroll has solutions for any level of need. Are you simply looking to improve your in-house payroll process? BASIC can help.
Are you looking for a fully outsourced payroll solution? BASIC can help with that too! We offer custom payroll and timekeeping services that can meet the needs of any size employer. Our best-in-class service includes personal payroll guidance, offering the feel of a small business with the expertise of a large publicly traded payroll company.
If you think it’s time to outsource payroll or are just interested in what BASIC Payroll could do for your business, request a demo or proposal today!
