3 Benefits of Payroll Outsourcing for Your Business
Are you hesitant to outsource your payroll?
IBIS World states that almost 300,000 payroll and bookkeeping services are in the U.S. Payroll Outsourcing is the act of contracting out payroll processing services to a third-party company. To save money, many businesses choose to outsource their payroll operations.
As your business grows, so does the complexity of your payroll. Do you know the advantages of using payroll outsourcing?
Here are some benefits of payroll outsourcing for your business:
1. Payroll Outsourcing Reduces Costs
One of the biggest reasons businesses use payroll outsourcing is to save money. Many small businesses do not have enough capital to pay for the salaries of full-time workers. Therefore, they need to cut expenses.
One way to do this is to outsource their payroll through payroll processing services. They can also help clients to know more about these services by referring them to experts.
2. Keep You Stay Compliant
With all the complex rules and regulations surrounding payroll, it’s difficult to keep up with everything yourself. But by working with professional payroll outsourcing companies, you can take advantage of their expertise in payroll processing and compliance. This can free up your time to focus on other aspects of your business.
It can delegate those responsibilities to payroll outsourcing services providers. In addition, a payroll company can help you keep up with the latest changes in payroll tax laws and regulations, such as.
Federal Insurance Contributions Act (FICA)
For employers with over $400,000 in annual wages paid out to their workers, they will now pay 6.2% on top of each worker’s regular income taxes. This means that if you pay someone $50,000 per year, then you would owe them an additional $2,100 in taxes.
If you have any employees who work under the Medicare program, you will now collect Social Security and Medicare taxes from those individuals. When you don’t collect this money from your employees, you could face penalties and interest charges.
Employers with pension plans will need to contribute to the plan again. Employers before were only required to contribute to the plan if they had 100 or more employees. Now, employers with less than 100 employees will be required to contribute to the fund.
Health Savings Accounts
Health savings accounts are now allowed to be used for both medical expenses and dental expenses. Previously, they could only be for medical expenses.
3. Reduces Risk
Payroll outsourcing can help your business reduce risk in several ways. By taking on the responsibility of payroll, you no longer have to worry about the potential for errors in your payroll processing. Using a reputable payroll company will pay your payroll taxes on time and in full, which can help avoid interest and penalties.
With your outsourcing payroll, you can free up your staff to focus on other aspects of your business.
Enjoy Payroll Outsourcing Beginning Today
There are many benefits of payroll outsourcing for businesses, including saving time and money, reducing stress and liability, and increasing accuracy. Payroll outsourcing can also help you improve your employee morale and retention.
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