A very large portion of businesses today realize the benefits of outsourcing their payroll. For the smaller employers of 20 or fewer employees, the benefit of outsourcing the payroll to a professional payroll service significantly outweighs the additional operating costs.


When the internal costs of time, printing and distributing checks, and preparing tax documents, are considered and compared to the cost of outsourcing this very important task, the business will actually reduce costs over time. Payroll companies can offer these services for less because of their operating volume, sophisticated software, and expertise in the industry. Most payroll services will also be knowledgeable about the insurance requirements for your industry and can assist with reducing insurance costs through partnerships and relationships built over time.

 Increased Productivity

Whenever staff decreases time spent on non-revenue producing tasks, increased productivity is the result. The ability to focus on core business activities can increase sales and revenues simply by increasing the available time for performing what you do best. When small or mid-size companies must designate staff members for non-revenue producing tasks, revenue producing responsibilities are increased on those staff members that are responsible for providing sales or services to clients and prospects. The staff at a reputable payroll service will complete the payroll administration much quicker as a result of their expertise, available software, and automation.

 Accountability and Compliance

Performing payroll tasks in-house also brings IRS rules and regulations into play. Errors can cost the company time and money which is something that may be short in supply. A report provided by Business Week estimates that approximately 40% of small businesses pay a tax penalty of some type each year as aa result of payroll errors. Consider how much money your business would save over time if IRS penalties were eliminated. As for compliance, the regulatory requirements for business are continually changing. Using a professional Payroll service takes the regulatory burden off the backs of business owners and puts it squarely on the shoulders of experienced and professional team members that will make certain your payroll and reporting requirements are completed on-time and without error.

As a business owner, diverting your attention to payroll, even for a short time, can become a roadblock for doing what you do best. Spend your time and resources growing and managing your business, not your payroll.