Advantages of Small 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 various answers, none have ever said they did to handle payroll or compliance issues. This is the first sign that outsourcing payroll may be a valuable move for your business.

When comparing costs of outsourced payroll to those of a full-time minimum wage employee, you should immediately see the savings. In addition to seeing those cost savings, off-loading the liability and everyday 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 guesswork 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 supply the software platform only? Or is there professional staff to support your payroll specific needs when they arise?
  3. Can the outsourced payroll 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. Is there any add on packages that would benefit your company at little to no extra 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. Doing so will give you more information on how their systems and procedures work. As well as, give you a pricing guide that is built specifically to your unique needs.

For a demo, more information, and pricing click here

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