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You Denfinitely Want to Outsource Your Payroll

Outsource work

Payroll is a big job and it takes a lot of training to get it right. If you do it yourself, you have to be very careful. You must be sure that the correct taxes are withheld from your employee’s paychecks, the wages and bonuses are correctly calculated, the correct taxes are paid, that wage and hour laws are followed, and that your employees get paid on time.

Outsourcing payroll is the the best option for most small businesses.

If your company has fewer than 20 employees, it probably doesn’t pay to hire someone to do in house payroll.

By outsourcing payroll you will almost definitely save money on bookkeeping fees, even if you were splitting the work with the bookkeeper in your own precious spare time.

Some Facts About Payroll

  • According to the IRS, 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings. Most payroll companies guarantee their work so that you won’t incur fees no matter what.
  • Payroll is more work for hourly employees with changing schedules than it is for salaried employees. This makes a big difference to you, but doesn’t matter to the payroll company.
  • Employees like direct deposit (which is difficult to set up if not through a payroll company). With direct deposit employees don’t have to come in to work on their day off or sick or vacation day to pick up their check, and they don’t have to wait for the check to clear.
  • Employees prefer bimonthly paychecks rather than getting paid once a month.
  • The payroll market is competitive and reflects local conditions. Some payroll companies have charges for extra features like W2s, frequent payroll, adjusting employee info, but many of them don’t so shop around and ask questions.
  • Some time tracking services, like, can send timesheet info directly to many payroll companies in electronic form. This way you don’t have to call in the hours (the traditional method of conveying payroll data).

Outsourcing payroll makes your company more efficient, and when it comes to payroll (the whole reason your employees are there to begin with) this makes your business more desirable and competitive.

If you’re still not convinced that doing your own payroll isn’t worth your time or headache, take a look at an article on HRWorld, providing 10 reasons to outsource your payroll.


  1. Leviticus Bennett
    Leviticus Bennett March 8, 2017

    That’s crazy that so many small businesses pay penalties for late or incorrect payroll filings. That’s neat that outsourced services have guarantees that promise to avoid those penalties. My uncle is starting a business, but he’s terrible with HR stuff, so he might hire another company to handle that for him.

  2. Ian Horn
    Ian Horn March 21, 2017

    Well, outsourcing a payroll service enables a business owner to focus on the process and strategies that directly contributes something towards the growth of the business. Apart from the facts about payroll that are mentioned in the blog, here I want to deliver some other benefits of outsourcing payroll in a small business.
    1)Time saving: Outsourcing payroll immediately frees up precious time and employers only need to make contact with their representative once in each pay period.
    2)Money saved: Time is saved means money is ultimately saved. Outsourcing payroll helps in saving a lot of money in completing the whole task.
    3)Improved security: Online payroll provides redundant back up and multiple server locations which in tern enhances the security.
    So, to my view it is better to outsource payroll services for the business.

    • Peggy Emch
      Peggy Emch March 30, 2017

      Thanks for the additions!

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