For small businesses, processing payroll can be a complicated and time-consuming task. Among other things, payroll functions can include anything from determining employee wages and withholding taxes, to updating a vacation and sick pay and deducting employee-contributed payments for benefits.
One of the advantages of outsourcing your payroll is that it can cost half of what it would to do it in-house. Hiring an outside service also eliminates the need to hire a full-time payroll manager, and you'll free up time to work on other aspects of your business.
It can offer you convenience. With outside services, you simply telephone their offices, give them the hours, deductions, and salary amounts of your employees, and the firm processes the check. Many services also let you update employee payroll information on their websites.
They also offer you functionality and accuracy. Many payroll companies also handle employee retirement plans and direct deposits. Payroll firms also know they must do an accurate job if they want to keep your business. You can count on them to stay up-to-date with new tax laws related to employee payroll.