Industry statistics suggest that payroll outsourcing is a growing business. Businesses of every size and scope are gradually coming to the conclusion that letting experts handle payroll processing and benefits administration is a better way to go. How about your company? Are you still handling payroll and benefits in-house, under the assumption that you really don’t need help from a third-party provider?
Below are four payroll questions every business in America should be asking and answering. How you answer these questions may determine whether your company would be better off outsourcing payroll and benefits administration. Dallas-based BenefitMall would be happy to help if you don’t know what to do with your answers.
Are we positive our company is complying with regulations?
At the top of the list of reasons companies choose to outsource payroll and benefits administration is the need to be compliant with federal and state regulations. Make no mistake about it; regulations only grow from one year to the next. With each stage of growth comes an additional layer of complexity that makes compliance harder with each passing year.
Today’s federal and state regulations are a myriad of confusing rules that often do not make sense to people who are not experts in payroll and tax laws. Even worse, differing state and federal rules often conflict to the degree that employers have to decide who to satisfy first. Payroll companies such as BenefitMall are experts in the arena of regulatory compliance. They take the guesswork out keeping the government happy.
Is our company attractive to investors?
Investors are always looking for solid business opportunities to work with. If an investor were to approach your company, would his or her due diligence research uncover a payroll department struggling to keep up with the demands of modern payroll and benefits? If so, such findings would not be inspirational. They might even cause the investor to second-guess a decision to put money into your company.
Outsourcing your payroll can tighten up the back office while proving to investors that you and your outsourcing partners have everything under control. This ultimately makes your business more attractive to investors over the long haul
Are employees happy with payroll access?
The information age has created a new class of worker who wants access to payroll information at any time of the night or day. Where employees in the past were willing to wait from week to week to get their pay stubs, today’s workers tend to be less patient. That goes for receiving W-2 forms in January as well.
When you outsource payroll with a company like BenefitMall, employees have instant access to their payroll information simply by logging into their dedicated accounts. They can get weekly pay information, download W-2s and other documents, and more.
Are we investing too much in payroll?
Handling payroll and benefits administration in-house is costly. It requires labor, time, and business resources that could be better spent elsewhere. On the other hand, outsourcing payroll saves money by freeing up time and resources. It pays for itself in most cases.
If your company is starting to look at growth plans for the immediate future, you should seriously consider how you’re handling payroll. Outsourcing could be the first step in realizing your growth plans by allowing you to dedicate more of your resources toward growth rather than back office functions.
It’s clear that outsourcing payroll is not right for every business. But for most, it is. It might even be the best option for your company depending on how you answered the four questions above.