One of the questions we get from new small business owners is “What do I do about payroll?” Yes, you can handle payroll yourself, but more and more these days entrepreneurs are opting for an outside payroll service. Small business owners are doing this for a couple of reasons:
To save some money.
When you choose to handle your payroll yourself, it becomes a full-time job. Most businesses that do their payroll from the inside hire on a new employee. Between the hiring, training, pay, and bonuses, hiring on an employee to do payroll becomes a huge expense. Not to mention the training and the software that will need to be purchased to actually do the payroll. By using an outside service, you get to avoid the hoops of hiring on a new employee and you save some money in the process.
To avoid the extra work.
As mentioned above, taking care of payroll is a full-time job. It’s more than just plugging in some numbers into a software. The rules and regulations of payroll are constantly changing, and are pretty complex. As a small business owner, you have so much more to worry about than payroll. By handing the job over to an outside service, you won’t have to worry about constantly studying up on the newest rules of payroll.
To make your employees happy.
If there are ever any differences or mistakes in payroll, your employees will be the first to notice. When a payroll service takes care of things for you, you have a much smaller chance of error. Things like direct deposit are also a lot easier when you use a payroll service. Employees often prefer direct deposit- no one wants to have to go to the bank each and every pay period. By using a service, direct deposit is part of the deal, and it’s one less thing for you to worry about.