There are many misconceptions behind outsourcing payroll that small business owners, in particular, tend to have. It makes sense; when you’re working on a limited budget, you have to make necessary sacrifices and put in a lot more manual work than those Fortune 500 companies that can use a software for pretty much every aspect of running their business. However, I’m here today to shed some light on these misconceptions and tell you a little about why I believe almost every business would benefit from payroll outsourcing.
Misconception #1: It Takes Jobs from Payroll Professionals
It’s surprising the number of time’s I’ve heard of payroll administrators being wary of payroll outsourcing because they’re worried their jobs will become obsolete. At Dominion Systems, we aim to provide our clients with a payroll solution that improves the efficiency of processing payroll and keeps them in compliance with all FLSA regulations. However, this does not mean that Dominion's payroll software takes the place of your current payroll administrator. We simply provide the tools and resources they need to succeed. This brings us to my first reason why you should consider payroll outsourcing:
Reason #1: It Empowers your Payroll Administrators
By using a Payroll Software as a Service (SaaS), you allow your payroll administrators to have complete control over the entire process. They’ll be able to easily delegate tasks while having access to the software on any device, from anywhere, at any time. This makes your administrators significantly more effective in the management of their company’s payroll process.
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Misconception #2: Once You Outsource, You Can Forget About Payroll
There are many pain-points an online payroll software can alleviate. With it, you’ll no longer have to worry about downloading software, purchasing licenses, data storage limits, the need for paper documents, and so much more. However, what it doesn’t do is take over payroll completely. All too often, particularly when a long-time payroll administrator leaves their position, business owners want to simply outsource their payroll and wipe their hands clean of it altogether. While this isn’t exactly feasible, most payroll companies build their software to be as user-friendly as possible. With Dominion, for example, the software is intuitive enough, you don’t need a background in payroll to use it.
Ready to be convinced that payroll outsourcing is right for you? Schedule a Demo today!
Reason #2: It Allows You to Be More Employee-Centric
Every business wants to do right by its employees. They’re the gears that keep the machine of your organization running, so it’s important to make sure you put time and energy into making their lives easier. Implementing a payroll SaaS is the oil that will make that machine run smoother than ever. This is because most payroll providers offer an Employee Self Service feature that comes standard with their payroll software. Employee Self Service will provide your employees with access to all of the information they related to their job. In fact, there are so many benefits to Employee Self Service that I wrote a whole blog about it. Read it here.
Misconception #3: It Costs a Lot of Money
This misconception is a little more complicated to dispute. After all, it’s true: outsourcing payroll is certainly more expensive than processing in-house. However, in most cases, the benefits of outsourcing overall will far out-way the base cost. First and foremost, you’ll save actual money by avoiding any fees or penalties from inaccurate tax filing or FLSA fees. Most payroll providers will absorb any tax penalties and will provide you with all the tools you need to stay in total compliance. What’s more, an Employee Self Service can go a long way in recruitment and retention rates. However, what I want to talk about primarily is the amount of time you’ll save with a payroll SaaS. You’ll be able to automate a variety of processes related to accounting, payroll, time and attendance, and human resources that often take up a large chunk of your day, thereby allowing you to focus on more important tasks. With Dominion, you can add on any number of features to help further these efficiencies, without paying for any tools you’re not using. This way, you get the most bang for your buck.
Reason #3: It Allows You to Go 100% Paperless
Going paperless has too many benefits to name, but primarily it will further save you money, while also adding the benefit of efficiency and being environmentally friendly. You can say goodbye to those enormous filing cabinets that take up space around the office and hello to having access to all of your documents at your fingertips. It also keeps all of the sensitive information that comes with processing payroll significantly more secure. Is your payroll solution completely paperless? If not, now is definitely the time to jump on that bandwagon.
So as you can see, “outsourcing payroll” doesn’t mean you pay some faceless organization x amount of money and don’t worry about it ever again. You’re simply using a payroll solution to automate your processes and improve the overall efficiency of your business. You can further bundle up your payroll package to include tax filing, W-2 distribution, and any number of additional features to make sure your business is running on all cylinders. Ready to take the first step in that direction? Schedule a free software demo today!