Take a minute to review the pluses and minuses
of switching your business to an outside payroll processing services provider.
Featured below are both the pluses and the minuses.

The
Pluses

• Time savings – Several surveys over the years completed by a variety of business associations have reported that business owners place payroll and payroll taxes as the number 2 task that takes up the most time and creates the most hassle of all the tasks categories it takes to run a successful business. It’s obvious that running payroll 1 to 4 times a month requires a ton of time and focus to complete. Switching to an outside payroll processing service provider frees up time and improves effectiveness for most business owners.
• Reduction in Expenses – Each pay period requires completion of a long list of required tasks including preparing and paying mandatory payroll taxes, running payroll reports, figuring out wages for the entire company staff, printing, signing and handing out payroll checks.
• Better Company and Employee Data Security – In 2019 payroll processing service providers provide, mirrored backup systems, several server farms, the most up-to-date technology, solid secure SSL (secure socket layer) firewall protected systems to safeguard private employee and company information and data.
• Keeping Current with Regulations – It is hard to stay compliant and current with payroll tax laws and payroll taxes. The financial penalties are huge. Payroll processing service providers know all the rules and regulations like the back of their hand. Their primary objective in running their business is implement this knowledge, process your payroll for your company and keep you current with all requirements and regulations.

The
Minuses

• Ease of Use Getting Wage Reporting and Employee
  – Certain payroll processing service providers do not offer reporting
  on payroll costs and other critical data about employees due to the fact they
  do not have the information or because the data is on their servers, which your
  business does get access to for various reasons.
• Time Issues on Fixing Payroll Mistakes –
  Payroll companies are sometimes slow to respond to payroll errors. If the
  company or the employee needs aren’t met when it comes to payroll errors, it is
  bad for everyone.
• Payroll Services Pricing –
  In some instances payroll processing service providers do not customize pricing
  to fit a company’s needs. Check to make sure the services provided fit your company’s
  needs and not the other way around.
• Chance Your Payroll Processing Provider Closes
  Its Doors – Businesses close all the time. It can be due failure,
  loss of a primary partner or any number of reasons.  If this were to happen to your business, you
  may lose out on access to company payroll data, employee data and potentially
  your company’s money.  

The
minuses described here do not have to be part of your picture. The main thing
to make sure you do is your due diligence in checking out the company thoroughly
first. Use the following guidelines to make a smart payroll processing service
provider choice:

• Recommendations from associates, mentors and business owners
• Documented credentials including time in business, similar company
  payroll processing experience and confirmed business licenses.
• Confirmed quality customer service and personal attention to
  detail
• Services and support offered meet your company’s needs
• Pricing and additional fees or charges are documented upfront
• Reporting of data, data reporting needs and security of data are
  rock solid

In today’s modern web-based technology world,
companies can choose from multiple options to complete payroll. Business owners
that opt to do it themselves is one way and businesses that choose to assign
the task of doing payroll to a department, like human resources, is another way
to go. Lots of businesses choose to go to a provider outside the company for
payroll processing like a bookkeeper, accounting firm or an online payroll
processing company. The rub lies in figuring out which method is the best way
for your company to do its payroll.

Small-business owners need to take a hard look
at where their time is best spent. Look at how much time is being spent now by
you each month doing the company payroll. If the answer is too much where for a
small monthly fee payroll is completed and the time is gain is used closing new
sales. Review your payroll to make sure you are current with all state and
federal laws, rules and payroll regulations. If you’re not sure or you’re not
current, it might be time to switch to hiring a payroll processing provider.
Look to see if you’re keeping all your company’s and your employee’s financial
data well secured and private. Also, check to make sure your company’s records
for wages, benefits and retirement programs are on time, current and correct.

Payroll Processing Success, But Is It Taking
You Away from Important Tasks

You are managing running your company’s payroll successfully. However, if keeping up with running payroll, maintaining legal requirements, data security and records is eating up a good amount of your time, you may want to switch to outsourcing payroll to an online payroll processing company. Payroll processing company will calculate your company’s payroll and its associated taxes, print and handout checks, complete direct deposit payroll checks and complete all the company’s payroll reports. It will file payroll taxes, issue annual Forms W-2, set up worker’s 401(k) deductions and connect their contributions to investment account providers and keep records on benefits of employees.