Every small business that has employees is obligated to carefully calculate employees pay in order to ensure they receive their pay checks on time, and that they are accurate. There’s also a myriad of deductions that must be managed such as taxes, health insurance and similar items. Some businesses choose to keep these tasks in-house, hiring a bookkeeper and support staff, thinking they will have more control over the process and that it will save the company money. The truth is, the benefits of an outsourced payroll service to small businesses far outweigh the benefits of maintaining payroll in-house.
1. Time Savings
Payroll is a time-consuming task that requires a great deal of attention to detail. And, the more employees a company has, the longer the process takes every pay period. It’s not just the time that an employee spends calculating and producing pay checks either, there are also PAYE & Revenue taxes to contend with. In most cases, the business owner acts as a supervisor, double-checking the work to ensure everything is done correctly. Outsourced payroll services for small businesses eliminate all of the tasks associated with payroll processing, leaving more time to focus on other, more critical tasks.
2. Decreased Expenses
Hiring in-house causes a burden on a companies financial, and human resources. There are, of course, advertisement fees and other costs associated with recruitment activities. Once an employee is hired, they need to be trained in company procedures to bring them up to speed on their job description and expectations of management. Let’s not forget about the payroll employees salary and benefits. The costs don’t stop there, though. They also need a space to work, furniture, equipment and supplies. When payroll is outsourced to a payroll company like Clear Group based in Balbriggan, Co. Dublin, we cover all of these employee-related expenses.
3. Avoid Tax Penalties
Most business owners are not experts in tax requirements. It’s no wonder since tax requirements and obligations continually change. it’s difficult to keep up, unless you’re an expert that receives ongoing training. Companies that process their own payroll face stiff penalties for improperly filling out paperwork, missing filing deadlines, and inaccurate filings. However, those that outsource rest assured that a payroll company like Clear Group will keep them safe from these issues. We have a deep, vast knowledge of the tax obligations, including recent changes and we take on all the compliance responsibilities.
4. Improved Security
Payroll processing involves the use of a great deal of personal information about employees, as well as access to company financial data. While a company’s employees may be reliable, trustworthy and dedicated, there are inherent security risks when they handle payroll in-house. Among the top concerns are identity theft, tampering with vital company data and financial fraud. Professional payroll firms like Clear Group have measures in place to protect against these types of security concerns, and offer detailed reports to track every aspect of the process.
5. Expert Services
Payroll processing companies such as Clear Group employ a staff of highly-trained professionals that are experts in a multitude of different areas. We stay abreast of new developments, laws and requirements for payroll taxes, healthcare deductions, overtime pay and more. We can, and do, act as consultants to companies, offering sound advice as to proper procedures regarding employee compensation. This level of expertise is indispensable for businesses, keeping them out of trouble with the government, and ensuring all employees are treated fairly with regards to their pay and withholding.
If you’re a small business owner based in Ireland who maintains an in-house payroll department, why not consider the benefits of outsourcing mentioned above. If you have any questions about payroll processing, or if you’d like to learn more about how outsourcing works, please contact us today