Let’s face it, payrolling a contingent workforce is a time-consuming and tedious undertaking. Your company would much rather prefer to work on the organization’s long-term workforce goals instead of calculating overtime pay and tax withholdings, but getting this stuff right is an absolute necessity. The alternative is an expensive road to travel and will ultimately affect the wellbeing of your employees.
Bloomberg recently reported that the IRS issued 6.8 million penalties totaling $4.5 billion related to payroll employment taxes in just one year. How can your company ensure it won’t end up contributing to that number? Here are a couple of benefits to partnering with a payroll provider:
Focus on your core business
Payroll is a critical business function that doesn’t impact sales, but it can negatively affect your company’s bottom line if managed incorrectly. Proper payrolling deserves immense attention to detail and detracts precious time from your core business. Not to mention, payroll is especially nuanced.
There are obvious legal requirements, like tax reporting and remittance, but you also need to know when to file at the federal, state, and local levels. You also have to consider wage and hour laws, which can be highly technical. Simply put - payroll is complicated and time-consuming. Outsourcing to a payroll provider will allow your company to reallocate precious time and energy to core business initiatives.
Yield major cost savings
With an expert provider managing your payroll, your company can cut costs by eliminating risks and rogue spending. For example, implementing a robust timekeeping system in order to pay employees accurately can save your company a lot of money in the long-term.
Also, let’s not forget potential penalties for inaccurate reporting and other requirements. According to the IRS, 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings. Depending on the size of your business, outsourcing your payroll does not have to be a terribly expensive undertaking. The money you would have on inaccurate reporting and penalties is worth the partnership, as well as frustration saved down the road.
Is your company ready to explore a partnership with an expert payroll provider like Eastridge Workforce Solutions? Contact us today to speak with one of our experts!