If you own a small business and are considering using a payroll service, you may have wondered about the advantages and drawbacks of choosing to outsource your payroll. This is especially pertinent when it comes to cost analysis. Does it make sense to use a payroll service or should you do it in house? to get more information about payroll services click here
Does the size of your business make a difference?
One of the most common questions asked when considering a payroll service is whether or not the size of your business makes a difference. Many small business owners worry that it isn’t financially sensible to hire a business when they could just do it in house. The question isn’t actually about money entirely. If you felt like you could handle your own payroll service, I’m not sure you’d be here reading this article. That said, hiring a payroll service can be cost prohibitive depending on the size of your business. Larger business will pay more, but they also have a larger around of capital to spend. It may be worth spending the money to reduce your stress level (or whoever is currently managing your payroll).
Consider what else the payroll service offers
Besides the obvious payroll processing, there has been a move into more comprehensive payroll services. But what does this mean exactly? This integration of not only payroll but also time/attendance management, health/wellness benefits and general workplace administration can help further save you money in the long run by having all of these services managed in one place under one cost structure. In fact, in a recent study, people who “bundled” some of their payroll services with other HR related services actually ended up saving between 18 – 32%! read more about payroll services at https://www.fredonia.edu/about/offices/payroll
So what is the best solution?
Payroll outsourcing isn’t a one size fits all arrangement, as there are many factors to consider besides the financial. Make sure you consider the whole picture when making the decision for your business. Also, when looking at your payroll service options, read the fine print. Some companies have hidden fees, especially when bundling comprehensive services together. When it is all added up, it may make your payroll service go from being financially fiscal to being just out of reach. However, overall, the largest cost savings tend to go to the companies that have the most employees. This is mainly due to the time it would take an in house payroll service to process payroll and manage HR versus outsourcing it and being able to refocus that energy into growing your small business. Considering that almost 90% of companies surveyed stated attempting to reduce costs was their main reason for looking into an outsourcing company, it probably requires a much greater look on the part of you and your management before deciding which way to go.
Small business ownership and management can be tricky. Choosing whether or not to use a payroll outsourcing service doesn’t have to be a decision you make on your own – make sure to look at it from all angles!…