3 Common Misconceptions About Outsourcing Payroll
Paying employees in a timely and accurate manner is absolutely vital for businesses hoping to stay solvent. Other than the obvious ethical ramifications that come with payroll errors, failing to live up to your responsibilities as an employer will alienate your workforce and affect your overall ability to make profits.
If you find it is taking hours every month for you or your employees to complete payroll processing, you may be considering payroll outsourcing services. These represent valuable resources that can save hours of employee labour.
Unfortunately, however, there are a number of misconceptions surrounding these services that prevent business owners from making the most of them. These include:
1. Taking Care Of Payroll In-House Is Quick And Easy
Many small business owners believe that running payroll in-house is a rational decision if they have only a small group of employees. However, it is easy to forget that payroll processing involves many administrative hurdles such as legal considerations and tax regulations that take up time and, by extension, money. What’s more, failing to accurately complete payroll processing can have legal ramifications and cause reputational damage to a business. Outsourcing eliminates all of these worries.
2. Outsourcing Is Not Safe Or Secure
Data security is a hot topic in today’s news cycle, meaning many companies are hyper-vigilant about the employee data they are willing to share. Remember that payroll companies are highly adept at dealing with security issues and will go out of their way to ensure that their clients’ employee details are kept safe.
To put your mind at rest, it may be useful to talk to your payroll provider about how they store sensitive data. Ask what kinds of servers they use, for example, as well as the backup systems they have at their disposal. Ultimately, it is important to remember that the success of these businesses relies on their ability to keep data safe and secure. The chances are that they will be better equipped to keep employee data safe than you are.
3. Outsourcing Means Relinquishing Control
Payroll providers are there to work with you, not to take control of your financial powers. You will still have the ability to write cheques, for example, and will simply need to notify the company of your actions so they can account for them. You will also retain power in regards to how you report information. In other words, if you prefer to send employees reports via email or an online payroll system, the provider will work with you to make this happen.
Image source: Pixabay