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In-House Payroll vs. Outsourcing Payroll Services

10/02/2018

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Payroll is arguably one of the most important HR responsibilities for an employer, especially if you were to ask the employees. But, for companies that may not have a designated payroll professional on staff, the task of payroll processing can be frustrating and time-consuming for the employer to manage. That’s one of the reasons many employers seek to utilize payroll outsourcing and processing services.

Payroll outsourcing and processing services offer several benefits to small businesses and employers. Not only can it save time and energy, but employers can rest assured that payroll outsourcing providers will keep all processes and procedures in compliance with the latest payroll laws and regulations, avoiding any potential penalties for even the smallest mistake. 

Four Factors to Consider for Payroll Outsourcing & Processing Services

If you’ve been on the fence about utilizing payroll outsourcing and processing services, here are a few things to consider.

  1. Company Resources—Something every employer must consider when deciding between in-house payroll processing or choosing a payroll service provideris company resources. If an employer doesn’t have the proper technology, professionally-trained staff, or ability to maintain payroll records, it is probably a good sign that outsourcing payroll duties is the best way to go.
  2. Data Security—Employers must take every step to ensure employee data is kept safe and secure at all times. One of the biggest concerns for small businesses when it comes to outsourcing payroll and processing is data security. Knowing that a high level of sensitive data is within its care, payroll providers go the extra mile to keep client information safe and secure from cyber-attacks. Every payroll outsourcing company should be equipped with the proper tools and tactics to protect sensitive employee data.
  3. Tax Compliance—Knowing how to properly manage tax deductions and meet the federally-mandated taxes for Social Security and Medicare is one of the biggest factors in productive payroll management. A payroll outsourcing company can properly ensure the filing of federal, state, and local tax returns, while also processing payment for all payroll tax liabilities. Employers can also benefit from a payroll outsourcing agency’s on-time responses to tax agency inquiries.
  4. Employee Self-Service—Establishing a process that makes it easy for employees to manage their payroll needs is a valuable way to make payroll processing more efficient. Most payroll outsourcing companies offer employees online self-service capabilities. This technology provides convenience for employees who need quick and easy access to their personal pay information. Many of these companies also offer employers time-clock interface tools and apps to make for a more user-friendly experience for employees.

Let Us Support Your Payroll Outsourcing & Processing Needs

At LBMC Employment Partners, our goal is to provide employers with peace of mind while reducing risk in the complex areas of payroll processing and payroll tax compliance. The benefits above are just a few of the reasons we’ve been recognized as one of the top payroll service providers in Tennessee

Want to learn more about our payroll outsourcing services and outsourced payroll processing? Have a specific question regarding your business? Contact us today! 

Posted in: Payroll