Full-Service Payroll vs. In-house: Examining the Pros & Cons
JAN 11, 2021
As a small business owner, one of your primary responsibilities is making sure your employees are accounted for and taken care of. Ensuring that your team gets paid accurately and on time is one of your top priorities as a leader.
When it comes to payroll, you have two basic options: handle it in-house, or outsource with a full-service payroll processing firm.
Outsourcing payroll is a big decision for a small business owner. Learn the benefits of full-service payroll, and what often makes it a smarter choice than in-house.
WHAT’S THE DIFFERENCE?
A company can’t run if people are not getting paid. Payroll is how you reward and retain employees for their hard work, as well as mitigate benefits, bonuses, and other perks of the job. Your company may address the pay structure differently specific to the size and nature of your organization, whether weekly, bi-weekly, through direct deposit or physical checks. Payroll processing can be handled through an internal human resources or financial department. This may work efficiently for larger businesses, but for smaller businesses tight on manpower, full-service payroll outsourcing provides a helpful alternative to taking time away from your workers and the flow of daily business.
Payroll processing and tax responsibilities can become difficult and overwhelming for small businesses. Staying on top of new yearly tax laws, codes and compliance are almost impossible to track in-house without a dedicated payroll office.
With an array of issues to manage regarding payroll, many businesses are finding that outsourcing to companies with full-service payroll solutions is the answer to all their problems.
WHAT ARE THE ISSUES?
Payroll should be a non-core function for businesses, according to Small Business Trends. “Non-core” means a function where the business doesn’t profit or advance or differentiate you from competitors. Such a function is ripe for out-sourcing.
For workers with other responsibilities on their plates, meeting payroll and tax deadlines can prove a huge challenge. In-house payroll is time consuming and depending on how a company is handling the organization of their employees’ HR data, time-in/time-out, benefits selected and PTO it can be a daunting assignment for most to bring in all these components together when it’s time to process payroll. To manage these moving parts, many businesses are looking to outsource their payroll processing to a single database, all-in-one solution to manage both payroll and HR.
Through outsourcing to a full-service company like Payroll Vault, your business can rest assured that all processing and compliance duties are handled by experienced and qualified professionals. These people are in the business of staying up to date on all tax laws and updates. Many small businesses that choose to handle payroll in-house fall behind on compliance issues and face audits and penalties. To avoid such issues, it may be in the best interest of your company to depend on outsourced professionals.
Payroll Vault guarantees that if any problems arise with your payroll processing or tax reporting, our team will rectify the issues immediately and cover any fees or penalties that might incur from those mistakes.
Payroll processing is a detailed and timely process, so when handled in-house, it requires business owner or payroll administrator to handle large quantities of data that they must double-check for any keying errors. Because of this, it doesn’t give them any time to help a valued customer in need, or time to improve other areas of business operations for the company. Outsourcing these responsibilities frees up employees and administrators to spend time on what they were trained and hired to do.
OUTSOURCE WITH THE BEST
Payroll Vault has enlisted a team of internal payroll specialists who focus on helping small and medium-sized business owners stay informed about updates on tax deductions, year-end documentation, and compliance standards to ensure that you can focus on running and building your business. As a Payroll Vault client, you will work closely with these dedicated experts to keep your workplace efficient, stress-free, and profitable.
To learn more about outsourcing your needs with Payroll Vault, request a quote.