Companies who outsource their payroll swear it is the best decision they have ever made!
Less administrative burden, higher employee satisfaction, better security – the perks are attractive, to say the least.
Payroll outsourcing myths can portray outsourcing negatively and make companies hesitate to go down that route.
Given below are some of the most popular myths about payroll outsourcing.
Small Businesses Don’t Require Payroll Outsourcing
Many small business owners think they should wait till they expand their company to outsource payroll operations.
This is not the case.
When you have a small business, you should be focusing on reach, growth strategies and partnerships. If administrative duties take up a huge chunk of your time, you will not be able to make time for other important business operations.
There are payroll service providers who work specifically for small businesses and provide cost-effective services.
It Will Cost The Company A Lot Of Money
Contrary to popular belief, outsourcing payroll operations can help companies save money!
Even if you carry out all your payroll operations within the company – you have to pay for the staff, software and other additional costs.
If you hire untrained staff to handle payroll, mistakes can result in financial losses, especially legal ones.
With a qualified payroll provider, you can avoid making them.
Less Security
Payroll service providers have adequate security measures, sometimes even more advanced compared to companies that manage their payroll in-house. They know about the latest security updates and are more qualified to handle sensitive information.
Unless you have staff who are well-trained in data security, you are better off entrusting your information to someone more qualified.
There is also the option of hiring specialized staff but this will be a costly affair.
No Control Over The Payroll Process
Companies can choose the payroll operations they want to outsource.
Some might outsource only specific ones while others will hand over everything to the provider.
You can customize your payroll outsourcing plan and have an insight into all the operations.
Just because you outsource your payroll doesn’t mean you stop surveying the process or procedures.
Outsourcing Payroll Is A Long & Complicated Process
There are companies who want to outsource their payroll but are hesitant to do so. The idea of transitioning can seem scary and complicated.
While there is initial planning and setup involved, a good payroll provider will ensure that the transition is as easy and seamless as possible.
Make sure you have a clear picture of how you want the new payroll procedures to be carried out before you choose a provider.
Employees Are Going To Be Less Satisfied
Late and inaccurate payments are common in companies that manage their payroll in-house.
A proper payroll provider will ensure that all the employees receive their payments on time and without any calculation errors.
With payroll outsourcing, employees can also view their profile, make changes and verify their hours.
Outsourcing Payroll Will Make Tax Handling More Complicated
Many small businesses make the mistake of not hiring an experienced accountant to manage payroll taxes. This can lead to heavy financial losses, especially in the starting stages of a company.
A third party payroll provider who is more experienced with tax handling will take this burden off your hands.
Tax related mistakes can be very damaging and it is important to make sure specialized providers handle your payroll.
Conclusion
It is always daunting to make a new or fresh business decision particularly when it involves something as important as payroll.
Proper planning will aid in a smoother transition and the company employees will be prepared for the new changes as well.
