STPS

Questions To Ask Yourself When Considering An Outsourced Payroll Solution

Anyone who has worked in a business knows that payroll isn’t always the simplest or most delightful part of the job. Payroll processing can take anywhere from a few minutes up to an entire day or more, depending on the size and complexity of the company and its structure. Payroll can be a significant administrative burden for most businesses that operate on a bi-weekly or weekly pay schedule. Using a payroll provider allows the company to save time and focus on its clients while the third-party handles the outsourced payroll.

It’s no surprise that many businesses choose to outsource their payroll to get some extra time on their hands. Particularly in smaller businesses that may lack a payroll team, payroll processing is the manager’s or owner’s responsibility. Outsourcing allows the company to save time and focus on its clients while a third-party handles payroll and related tasks such as payment distribution, and paying and filing local, state, and federal taxes.

While payroll outsourcing may appear to be a simple decision for some, it is not always the best for every company. There are several factors to consider when deciding whether outsourcing is the best option for the company.

Does the Provider Have a Successful Record?

Ensuring that employees are paid correctly and the taxes are submitted and filed is the company’s responsibility. Significant penalties and interest owed to various state and federal agencies could be the result of late or incorrect payments. With so much on the line, it’s critical to find an outsourced payroll partner who can be relied on to handle all aspects of payroll covered by the service agreement. Using referrals and reviews can be useful in locating a reputable provider.

How Much Does It Cost?

One of the most important factors to consider is cost. Businesses should consider the time saved by not doing administrative work in-house when evaluating the cost of an outsourced option. You should also look out for any hidden fees within the provider’s service so you don’t end up surprised with a hirer bill than expected. Those hours can be better spent on growing the business and generating revenue. 

What Will Happen to My Team?

Outsourcing is often associated with layoffs, which is a common misconception. This, however, is not the case. It is possible for a company with an in-house payroll processor to keep that person while using an outsourced provider. The in-house team or individual will collaborate with the Third Party Service to provide the payroll data to be processed and to resolve any issues or discrepancies, allowing them to focus on strategic initiatives and other high-value activities while the third party handles the administrative tasks. Working with an outsourced partner usually means that the entire process is not carried by one person, which relieves stress and worries when someone is on vacation or sick.

Is Outsourcing Your Payroll Right For Your Company?

Outsourcing payroll is not for everyone. To select the right provider, you need to ask the right questions. Businesses can gain significant benefits from working with an outsourced payroll provider. Superior Trucking Payroll Service has the tools and experts to reduce your payroll burden and free up your time so you can grow your business. Contact us, request a quote, or check out our services page to see if we are meant for you!

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Written by Tessa Braybrook

Tessa joined Superior Trucking Payroll Service in September 2022. She loves to write and make videos which made her a great asset to the team in her marketing position. 

Before working at Superior Trucking Payroll Service she worked in IT at GVSU which gave her the skills to problem-solve with customers over the phone. 

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