When Does it Make Sense to Outsource Payroll and HR?

Most business owners know they are more effective spending time on the core mission than being bogged down in administrative tasks. Outsourcing payroll and HR can cut the ball and chain that slows so many business owners down. When does it make sense to outsource payroll and HR?

Keeping staff tied up figuring out the the complex issues of payroll and workplace compliance, staying on top of the ever-shifting sands of tax and benefit deductions, not too mention keeping up with software updates and training are hidden costs that many business owners don’t think about as part of an in-house payroll & HR.

Payroll is one of the biggest costs for an employer. It’s not just the direct cost, it’s the hidden costs that really add up. From running down bookkeeping and payroll errors, garnishment paperwork, tracking paid time off and benefits accrual.

HR and workplace compliance is a cumbersome and complex undertaking. Keeping from one to a small band of employees dedicated to doing just these core functions is time and payroll consuming. In-house HR managers are proven to be much more revenue positive when they can concentrate on core business vision such as strategic planning, team building, direction monitoring and workplace enhancements and business improvements. Outsourcing can give even small businesses a full department of experts and documentation to rely on without the direct cost of multiple, specialized employees.

Outsourcing can solve some of the following headaches:
• Increased compliance with workplace and tax laws
• Accurate bookkeeping with less chance for error
• Enhanced security-many outsource solutions have bigger pockets than small businesses and can house sensitive data with higher levels of data security than a small business can afford.
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