If you're like most small business owners, handling your own payroll can be a huge headache. But did you know that there are other options? Outsourcing your payroll to a professional service can save you time and money. Here's what you need to know about payroll outsourcing.
What is payroll outsourcing?
Payroll outsourcing makes it easier and more convenient to pay your employees. Payroll services handle the entire process from beginning to end, including all government reporting requirements. You simply write a check once a week or once a month based on hours worked, and the payroll service will take care of paying your employees and filing all required tax forms.
How do I know if outsourcing my payroll is right for me?
There's no simple answer to this question. Outsourcing your payroll involves a certain level of risk due to the sensitive nature of the information you'll be handing over. But if you're looking for convenience and don't want to deal with the hassle of doing payroll yourself, it can be a great option.
What are the benefits of payroll outsourcing?
Aside from convenience, other benefits include reduced errors, faster processing time, and a consistent level of service each time you use the payroll service. Many small businesses outsource their payroll to have a more reliable way of paying employees, particularly if they run on tight cash flow and can't afford interruptions.
What are the drawbacks?
Some businesses worry about handing over such sensitive information to an outsourced company, but this is largely unfounded -- strict confidentiality laws bind all companies that offer payroll outsourcing. Others worry about losing control of essential HR functions like time-off requests, but this is also something you can manage yourself if you outsource your payroll. Modern payroll services can integrate with popular human resources software, for instance.
How much does payroll outsourcing cost?
There's no one-size-fits-all answer to this question. The price will differ depending on the services you need, your company's size, and whether or not you outsource any other HR functions. Remember that while there may be setup fees, this is a subscription service, and the ongoing costs are probably less than you'd pay if you were to do the work yourself.
How quickly can I expect to see results?
For many payroll services, within 24 hours of signing up, you'll be able to download any forms needed to set up your employees or schedule wages. From there, it usually takes one to two weeks before all taxes are filed and your employees are paid.
Managing everything by yourself can be a hassle, which is why we recommend you hire certified accountants from Nidhi Jain CPA. We deliver top-of-the-line bookkeeping and payroll services to help you manage your financial records accurately. Our professionals can also handle all the paperwork for you and plan your business tax payments to help you save money. You can reach out to us here for more details.
We also provide tax consultancy services, and our certified accountants have received tax coach certification from the American Institute of Certified Tax Coach.
You can get in touch with them here for more details.