Why Your Small Business Should Outsource Payroll
If you believed in doing things someone else's way, you probably wouldn't have your own business. Still, just because you have a vision and goals for your enterprise does not mean you do everything on your own, and especially not payroll.
There are some aspects of running a business that are best left to experts. So even if you are good with figures and eager to keep costs low by handling as much as possible on your own, outsource employee payroll. According to Evergreen Small Business, a practical how-to site for small businesses, trying to save on payroll could end up costing you.
The High Cost of Savings
Sometimes you try to save in the wrong places in your business. A tax accountant writing for Evergreen states that payroll is not the place to try to save money. You could make costly mistakes that trigger government investigations or penalties, for one, the kind of mistakes that a professional payroll agency simply will not make.
Another reason to consider outsourcing employee pay is that it prevents employees from seeing or knowing too much about what others are making. People may be fine with their earnings now, but when your team discovers that you pay some people more than them, or more than they seem to be worth, it creates tension.
Generally speaking employees accept the terms of the deal struck -- they take what you pay. But when there is evidence of disparity, or unfairness, workers will become disgruntled. Having a private payroll firm handle employee checks eliminates the risk of too much talk about salaries circulating in the office.
By outsourcing payroll you also make the rest of the bookkeeping a lot easier. Then if you want to keep doing that in-house, you can. But what you may find after outsourcing payroll is that freeing up your time to focus on the big picture and not spending it on figures works to your business's advantage.
Consult With Counsel
If you are interested in streamlining your business processes and want help making the best decisions, consult with counsel. An attorney can help you will many aspects of business operations and ensure whatever you choose is sound business practice and legal.
Follow FindLaw for Consumers on Google+.
- Browse Business and Commercial Lawyers by Location (FindLaw Directory)
- Payroll Taxes and Withholding (FindLaw)
- McDonald's Franchise Sued Over Payroll Debit Cards (FindLaw's Free Enterprise)
- Business Taxation FAQ's (FindLaw)
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.