Outsourcing Payroll

5 Reasons Why You Should Outsource Your Payroll Operation & Focus on Growing Your Business Instead

You really can’t afford to anger your employees. After all, they are the backbone of your entire organization. Without them, you really can’t accomplish anything.

Among other things, salaries are something that every employee looks at before taking up a job. In fact, the first week of a month is the happiest week for every employee as they wait for their phones to beep with a message saying, “An amount of XYZ has been deposited in your account.”

Such is the impatience for their salaries, you really can’t afford to annoy them by being irregular or inconsistent with paying them their rightful dues. As a company grows, this becomes increasingly difficult.

Why? Because something as simple as paying salaries comes with a lot of steps and calculations. So, the higher the number of employees, the more tedious the work, and higher the chances of errors.

That’s why it’s important to consider the advantages of outsourcing this critical function. This not only allows you to divert more resources towards core operations but you also drastically reduce the risk and cost of errors.

Let’s see how you and your organization can benefit from outsourcing payroll:

1.Expert Professionals :

You may employ people on a salary basis or on a contract basis. Both demand a different tax and accounting treatment. Add to that the nuisance of keeping track of who are employed in what capacity. 

A HR agency that deals with payroll operations day in and day out knows every minute detail of it. This puts them in a better position to guide you perfectly, account for various kinds of employees, deduct taxes accordingly and keep track of them. 

In short, they take up a lot of these burdens and ensure there are no costly errors whatsoever.

2.Legal Compliances :

Payroll is more than just paying salaries. Its computation involves taxes that are to be deducted according to prevailing government rules and regulations.

In-house payroll manager/ HR manager may not always have all the resources or tools to keep themselves updated with the current laws. And a negligence in following these laws can land your organization as well as your employee in trouble. You don’t want that.

HR agencies are experts with understanding the implications of these laws. They are always updated mainly because your organization isn’t the only client they handle. Therefore, they will always ensure you don’t get into any legal trouble related to payroll.

3.Losing In-House Experts :

Say you end up employing and training a really good accountant who manages your organization’s payroll like a charm. What is the guarantee that they won’t quit when a better job opportunity pops up?

This means you need to employ and train a total newbie. That involves additional cost, the possible delay in releasing payments (because either you or someone less experienced is handling it until you are able to employ someone else).

When you outsource payroll function, you are free from this headache. Whether they lose their employees or not, you can rest assured that your organization’s payroll function is always in capable and professional hands.

4.Data Security :

Imagine one person within your organization having access to all of the employees’ data. This data can be stolen, tampered with or even used for the wrong purposes. It can also lead to identity theft.

Additionally, your accountant may give unauthorized access to your employees. There’s no end to the havoc this can create.

That’s not all. All the data of your employees are stored in your organization's server. What if someone breaches the security and hacks the data? As an employer, it is your duty to maintain the confidentiality and privacy of each and every piece of information you collect from your employees.

By outsourcing payroll, you ensure your data is secure. Since this is what they are meant to do they are loaded with state-of-the-art technologies that ensure data protection as well as the ability to spot any payroll fraud immediately.

5.Time Savings :

Procession payroll takes time that can be instead utilized in core operational activities. Outsourcing payroll allows you to focus on more important tasks such as growing the business, bringing in more revenues and serving customers in the best manner possible.

6. Monetary Savings :

If you have an in-house payroll function, you not only have to pay one or more dedicated personnel but you need to invest in high-end technologies and software. All this plus the training costs for handling these tools.

Outsourcing allows you to access these technologies and software at a fraction of the cost without worrying about recruiting, training and paying multiple people.

Conclusion

Payroll can be a tedious process. The stress caused by having to recruit and train people over and over again, dealing with the risk of data security and updating yourself with the latest technologies and legal requirements can give you serious nightmares.

So, allow yourself peace of mind and a good night’s sleep by outsourcing payroll operations to an expert.