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5 More Reasons Outsourcing Payroll is Smart for Your Business


Commonly known benefits of outsourcing payroll include time and money savings, reduced errors, and enhanced security. But you may not have thought about these five additional incentives to outsourcing your small business payroll duties:

1. Mobility 

In an age where information is literally at our fingertips, having on-the-go access to your payroll system from your smartphone is increasingly useful. If you manage payroll in house, you might miss out on this capability. When you outsource, you can leverage the powers of your payroll vendor's Web-based services — without having to worry about managing your own internal system.

2. Automation

No matter what industry you work in, as a small business owner you probably have a lot on your plate. Wouldn't it be nice to have one less thing to worry about? When you outsource payroll, you can create automation in your business processes. You can reduce the risk of errors that come with handwritten checks and in-house bookkeeping, and you'll never have to worry about missing another deposit deadline again. With streamlined direct deposit, your employees will thank you for saving them unnecessary trips to the bank.

3. 401(k) Integration

You want to offer your loyal employees the best benefits possible, but the tedious recordkeeping and paperwork that goes with administering employee benefits can be a headache. When you outsource payroll, you'll be able to easily integrate all your 401(k) processes. And you won't need to navigate the complexities of benefits plans alone — by using the same vendor for payroll and 401(k) services, you'll get focused expertise, security, and peace of mind that you're meeting all federal and state regulations. Integrating 401(k) with payroll also eliminates two big management tasks: ensuring that contributions are transferred correctly and recording important plan data.

4. Employee Access

Don't let your employees' payroll questions derail you from concentrating on your business. With employee access features, your workers can easily access pay stubs, Forms W-2, direct deposit information, and 401(k) details online, any time of day. Your employees will be able to easily update their payroll, benefits, and contact information, saving valuable time and paper consumption.

5. Simplicity

Managing an in-house payroll system, on top of all the other aspects of running your small business, can be extremely taxing. Whether you have three employees or 30, having to remember everyone's pay rate, hours, and employee status can be stressful and can possibly lead to inaccuracies. With an outsourced payroll system, you can simplify your processes and streamline all your employee and payroll information. Your appointment book will thank you.


This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.
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