Payroll Outsourcing – A Boon for Mid-sized companies

Expert business consultants have recommended outsourcing non-core business functions, such as payroll processing. Though most mid-sized business owners still choose to handle their payroll functions internally, the rest are transitioning to outsourcing payroll processing to professionals. 

This way, mid-sized businesses can use their professional advice and find sufficient time to focus on core business functions. So, if you have a medium-sized company, you should know why it is a boon for you. 

Advantages and Benefits of Payroll Outsourcing for Mid-Sized Businesses

Here are the distinct advantages and express benefits that highlight why payroll outsourcing is a boon for mid-sized businesses:

#1: It saves your time significantly 

Payroll management and processing are difficult and complex. The concerned department needs to consider minute details, such as new hires, garnishing, terminations, and benefits allotments, among other aspects, during payroll processing. 

However, outsourcing payroll handling to professional services relieves you from worrying about these mundane yet time-consuming tasks. This also frees your HR department to focus more on their core functions than accounting tasks. 

#2: It helps to avoid tax penalties and fines

Every year, several large, small, and medium-sized companies end up paying a significant amount of money to the Internal Revenue Service (IRS) in fines and penalties. As per IRS data, the average penalty amount recovered from companies for incorrect or delayed filings came to US$ 845. 

Mistakes in payroll management can cause you significant monetary losses. You should outsource your payroll tasks to professional payroll management service providers to prevent this. 

#3: Reduces business expenses considerably 

In-house payroll management works well for large-sized companies. However, if you are a small or medium-sized business, you should seriously consider outsourcing your payroll tasks to professionals. 

When you compare the cost of in-house accounting as opposed to outsourcing payroll activities, you will find a distinct and remarkable amount of money you can save by choosing the latter. 

#4: Enhances security sufficiently 

Payroll management requires handling employees’ personal information. This is a complex process and rife with risks. An event of personal information theft can ruin your business’s reputation, and your employees trust in the company. Besides this, in-house payroll management also has the risk of fund pilfering, resulting in significant losses for your company. 

However, you do not have to worry about this with professional payroll management services. Expert payroll management companies have advanced and effective security measures in place to avoid these and similar situations. When you choose to outsource the payroll of your mid-sized business, you can be sure to have extensive data storage and protection measures, backup facilities, and multiple server locations for your money. This is excellent for preventing the potential possibility of payroll fraud. 

#5: Get a professional team of experts on hand

Outsourcing payroll functions to a company gives you access to professional advice from a team of experts. These professionals are well-versed in government regulations regarding business and employee management. 

Apart from handling worker’s compensation with optimal accuracy, professional payroll managers can also handle employee issues and human resource activities in general. 

So, if you want to save time and money and streamline your mid-size business for growth, you should consider outsourcing payroll activities. Apart from the above five, there are numerous other benefits to outsourcing payroll management to professionals.

Relativity enables SMEs to focus on their core business, knowing that their payroll process is in the hands of a highly skilled & trusted partner. Drop us a line at sales@relativity.co.in to find out how we can empower your business with our services!