Advantages of small to medium size businesses outsourcing Payroll.

The first question I advise clients to ask themselves is, why did you go into business in the first place?  While I’ve received a number of various answers, none have ever said they did so to handle payroll or compliance issues. That is the first sign that outsourcing may be a good fit.

When comparing the cost of outsourcing payroll to those of a full-time minimum wage employee, you should be able to see the cost savings immediately.   In addition to seeing those cost savings, off-loading the liability and every day time consuming task of payroll, allows business owners and managers to redirect their time and energy to revenue generating aspects of their business.

As a company grows, it can also see an increase in error-making opportunities. By utilizing a professional payroll staff, you can continue to grow and handle various classifications of workers, while keeping the guess work out of being compliant with ever-changing government regulations.

When trying to decide what outsourcing solution best fits your needs, keep in mind a few questions.

  1. Is the company PEO only, or do they also offer ASO?
  2. Does the company just supply the software platform only, or is there professional staff to support your payroll specific needs when they arise?
  3. Can the outsourcing company scale with your company as you grow? What are some things they can assist with as you grow? i.e. HR support, Benefits Administration, Safety & Risk Management, Time & Attendance System.
  4. Are the costs straight forward, or are there hidden costs for additional reports, garnishments, or issuing w-2’s?
  5. Are there any add on packages that would benefit your company at little to no additional cost? e. Supplemental Benefits, or retirement options such as a Multiple Employer Plan 401k


Lastly, keep in mind that most companies will do a discover meeting and demo on their software. Giving you more information on how their systems and procedures work, as well as give you a pricing guide that is built specifically to your needs.


For a demo, more information, and pricing click here