Without a proper payroll program for your company, you could be looking at costly errors that will throw your finances off. The other problem you will face is being unable to get your employees paid on time, and accurately, which they will not appreciate.
For this reason, many companies utilize outsourced payroll services to help them handle their finances. This means that you can rely on payroll processing companies to handle all of your weekly, monthly, and yearly records, and even deal with all the deductions and taxes associated with every employee’s wages.
Here are some of the other benefits of using an outsourced payroll program.
- Direct Deposit. Many employees enjoy being able to have their paycheck go directly into their bank account, which is something that is often only achieved through outsourced payroll services. This also reduces the amount of paper handling, thereby lowering the chances for error. Employees get their money faster this way, and you won’t have to deal with late checks or lost mail.
- Penalties. Many small businesses in Canada have been penalized by the government for not paying their taxes on time, and this can be completely avoided by having a payroll processing company handle your taxes properly. If not, you could be facing hundreds or thousands of dollars in penalties.
- Overhead Costs.If you have your own payroll processing department, you would need to have a separate work space with computers, chairs, desks, phone lines, lights, and electricity. Also, some reports show that the average salary for a payroll administrator is about $51,000, meaning that you would have to spend a few hundred thousand dollars to hire a full team. Outsourcing would cost much less.
So, don’t waste anymore time and money on trying to figure out payroll on your own. Hire experts to take care of it, and get back to focusing on your core business.