On average, companies spend more than 40% of their total revenue on payroll which makes it the biggest expense across an organisation. But, increasing numbers of payroll mistakes indicate the need for more staff and better resources. But, this could also mean it’s time to consider payroll outsourcing.
As your company grows, your payroll functions will become more time-consuming and complex. Plus, you have to comply with the changing government rules and regulations. So when exactly should you consider outsourcing your payroll? Here are some signs to look out for:
Nobody in your Company can Handle Payroll Accurately
It might be time to hire a payroll provider if none of your employees can handle it without special training and preparation. While you have the option to hire new employees, this will only postpone the payroll task. Plus, you might end up hiring a person who lacks experience. But, hiring a payroll provider ensures they have the skills to complete their task.
Your Company is Handling Payroll Manually
Is your organisation carrying out the payroll process in-house and manually? If so, you must know that the manual process can create an administrative burden for your Human Resource staff. That is why your payroll staff is usually overworked. Keep in mind that errors can result in payment issues. Expert payroll providers do their job with precision because of their extensive training and experience as well as advanced technology.
You Don’t Have a Central Location to Keep your Files and Documents
If you are like other business owners, you are probably keeping your important payroll and employee records and details effectively and accurately. However, this is not enough. In these days of technological advancements, you can simply you record-keeping and data-storage processes by having a central location or making uniform filing processes. These are the processes used by professional payroll services.
You Have Expansion Plans
While expansion is an exciting milestone for your business, it brings enough headaches, from premises to equipment, recruitment, and sales. These can be compounded when you factor in a growing payroll. In case payroll processing is an extra expansion headache you cannot ignore, why not outsource it?
Compliance Becomes Overwhelming
A reputable payroll service provider has knowledge of and up-to-date with all new task laws and regulatory mandates. Every legislative session will only increase the burden on your employees to maintain this level of compliance knowledge. If you want to free your staff of this burden, it’s time to consider outsourcing your payroll.