Why Do I Need A Payroll Service?

Are you looking into this option for your business? If so, consider the following reasons why you probably need a payroll service.

Why Do I Need A Payroll Service?

Businesses of all backgrounds and sizes are currently acknowledging the actual value of outsourcing their payroll to a service provider. As a matter of fact, payroll is the first service that most businesses take into consideration outsourcing. This decision often comes as a result of the advice coming from their accountants.

For small businesses, in particular, processing payroll related tasks can turn out to be a time-consuming and complicated task. Among all other things, payroll responsibilities may include anything, ranging from the determination of employee wages, withholding taxes, to other aspects including updating sick and vacation pay, as well as the deduction of employee contributions for benefits.

Are you looking into this option for your business? If so, consider the following reasons why you probably need a payroll service:

Cost Involved

Most modern businesses, especially the smaller ones, that is, businesses with less than 20 employees, can relatively save money by hiring a service provider to take care of their payroll. Business consultants usually recommend adding up the total amount of time spent by internal employees on payroll, evaluating the resulting cost to the company.

Aside from these basic expenses, you can also add up the cost involved in the printing and distribution of checks, creation of tax documents, as well as bookkeeping. For most cases, these payroll services can offer services for a less amount of money, since they usually work by volume, employ the best practices in this aspect, and use advanced payroll software solutions.

Legal Compliance

It is a given fact that a payroll service provider is equipped with the resources needed and the expertise in completing payroll paperwork in the most accurate way possible. In terms of legal compliance, these services can easily keep pace with the constantly changing, and potentially complicated legislation, rules and tax obligations typically associated with different payroll transactions.

As such, your business can certainly depend on the capability of a payroll service provider to meet the deadlines for filing, while making accurate and timely deposits. These payroll services may also be especially helpful for businesses with dispersed workforce, since payroll regulations and laws may also have the tendency to vary from province to province.

Convenience

With the help of third party services, you can expect convenience which you may not have experienced before while simply letting your internal staff do the job for you. With a service provider, all you have to do is to call them if you need clarifications and requests, provide them with the information they need, and they will take care of everything from that point forward. Most of these services give you options, thus allowing you to take control over the unique requirements and needs of your business. In fact, most of these service providers even allow you to update the payroll information of employees on their Web portals.

Accountability

Payroll is usually attached to a lot of rules and regulations mandated by the government of Canada. Outsourcing payroll administration usually shifts responsibility regarding legal compliance to the service provider. As a matter of fact, small businesses end up paying a penalty every year because of some mistakes in the filing of payroll taxes.

On the other hand, payroll service providers are less likely to deal with these penalty charges for inaccurate or late paperwork. This is because most companies these days offer a guarantee for all their work.

Productivity

Availing of the services of a third party payroll service provider can free up your internal staff, allowing them to finally focus on creative, productive and higher-value pursuits which helps in the development of your business. Entrepreneurs of small businesses particularly appreciate this level of freedom given to focus on what really matters most.

By being able to focus on what your strengths are, leaving all others to a professional service provider, you can now devote more time to managing and cultivating your business even further. These providers are trained to complete payroll transactions faster, since they have in their hands volume, expertise and software.

Better Overall Service

Payroll administration services naturally come with an advantage as compared to your internal team in offering high quality service. As already mentioned, factors including access to advanced payroll technology, volume and expertise are at play here. As such, your employees can depend on a timely, accurate and professional paycheck coming from a payroll company.

As a bonus for them, they may also be able to take advantage of premium services related to payroll, including a direct deposit to their account, as well as a self-service portal for online reporting.

While you may view your business as one that does not need a third party payroll service provider, even thinking that doing so will defeat the mission statement of your company, carefully taking into consideration these benefits may even lead your business to greater heights.

Tasks related to payroll administration can easily control the internal staff of any company, unnecessarily diverting their attention away from the core activities of the business. With the help of a professional payroll service provider, on the other hand, your business can expect to save money, while improving productivity at the same time.

Also, these service providers make good use of their expertise and their access to advanced technology, making sure that the needed paperwork is finished right on time, and in the most accurate way possible. For most modern businesses, leaving payroll in the caring hands of professionals does not just provide relief, but it is also one of the smartest decisions they can ever have.

Indeed, for your business, the best way to manage payroll is by taking advantage of the assistance extended by a payroll service provider. Regardless of the size of your business, these service providers will be able to help you when it comes to handling with various payroll needs, making sure that you can focus more on your business’ core activities. As a result, you can further strengthen your company’s status.

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