| When it comes to executing payroll, companies | | | | payroll requirements, and other regulations. |
| usually grapple between two choices: 1) keep it | | | | - Expert insights and specialized skills. Payroll |
| in-house and process it manually or 2) outsource it | | | | service providers have an in-depth knowledge of |
| to a specialized payroll service. While using an | | | | tax-related laws on all levels – federal, state |
| external provider can alleviate many of the | | | | and local. With access to vast technical resources, |
| hassles of processing payroll yourself, there are | | | | a third-party specialist can process even the most |
| several factors to consider before taking the leap. | | | | complex compensation plans with ease. |
| Advantages of Payroll Services | | | | Disadvantages of Payroll Services |
| - Cost savings. While it may make sense for large | | | | - Cost. In some instances, it may be more |
| companies to maintain payroll departments, it's | | | | cost-effective to keep payroll in-house than to |
| not always cost-effective for companies with | | | | utilize third-party services – especially if you're |
| fewer than 20 employees to do so. Calculate how | | | | looking at costly traditional payroll services. Be |
| many hours you spend on payroll-related activities | | | | sure to consider online alternatives to traditional |
| (be sure to include check printing and distribution | | | | companies that offer all the same services and |
| as well as creating tax documents) and compare | | | | guarantees for a lot less. Crunch the numbers and |
| the cost of wages to the cost of plans offered | | | | determine which option makes the most financial |
| by payroll service providers. Also be sure to | | | | sense for your business. |
| factor in other quantifiable expenses, such as | | | | - Confidentiality risk. When outsourcing payroll, vital |
| software and IT management. With all costs | | | | employee data and salary information must be |
| considered, payroll services may provide an | | | | shared with the service provider. While reputable |
| affordable alternative. | | | | payroll companies adhere to strict privacy |
| - Time savings. Payroll is very time consuming, | | | | protocols, many employers are apprehensive |
| requiring meticulous attention to detail and | | | | about relinquishing confidential, secure information. |
| monitoring of the latest legislation related to | | | | It may be safer to enter payroll yourself online, |
| payroll taxes. By eliminating this function, you and | | | | as opposed to calling or faxing it in to a payroll |
| your staff can focus on the core functions of | | | | service, so make sure to consider online services. |
| your business and devote more time to | | | | In more instances than not, payroll outsourcing |
| revenue-producing endeavors. | | | | has a positive impact on operational efficiency and |
| - Access to the latest technology and legislation. | | | | productivity. Nevertheless, your decision about |
| Continually upgrading software can be a financial | | | | whether to hire an external payroll service |
| drain for any business – especially if there is a | | | | provider should not be taken lightly. After carefully |
| need to hire IT professionals. When you enlist a | | | | evaluating the pros and cons, you'll have a better |
| payroll services provider, you'll have access to the | | | | grasp of whether utilizing a payroll service will be |
| latest available technologies and will stay abreast | | | | in your company's best interests. |
| of emerging trends regarding payroll tax laws, | | | | |