Paychex Small Business Snapshot: Business Owners See Peace of Mind as the Biggest Value to Outsourcing Key Business Functions
A recent study commissioned by Paychex, Inc., a leading provider of payroll, human resource, insurance, and benefits outsourcing solutions for small- to medium-sized businesses, shows that more than half of small business owners are handling payroll, human resource, and benefits administration themselves. More than one-third of those relying on a service provider to administer such functions say peace of mind is the most important reason for doing so. The results were revealed today as a part of the company’s latest Paychex Small Business Snapshot.
According to the Paychex Small Business Survey, of the more than 300 business owners surveyed, 56% of small business owners are administering payroll on their own. Sixty-five percent say they are handling HR administration themselves, and 59% reported taking care of their own benefits administration.
“Whether you’re a small local bakery or the owner of a 300-employee construction company, payroll, HR, and benefits are all critical functions for your business,” said Martin Mucci, Paychex president and CEO. “The challenge lies in managing and integrating these functions while staying compliant in today’s highly complex regulatory environment. That’s why we recommend relying on the expertise of a partner like Paychex to help provide peace of mind where these key business functions are concerned.”
For the accounting community, the ability to counsel clients on how to best manage such tasks can help to reinforce the relationship between a client and his or her most trusted adviser.
According to certified public accountant Todd Zgoda of Bruce Zgoda, CPA, in Buffalo, NY, it’s the risk of potential repercussions that top his list of reasons to recommend that clients enlist a service provider to administer business functions such as payroll, HR, and benefits.
“From forgetting to file returns or make payments on time to unknowingly failing to comply with new regulations, the hard lessons business owners can learn are very real,” Zgoda says. “Many times, it only takes one financial penalty to waste whatever money a business owner thought they were saving by administering key functions like payroll themselves.”
Overall, 40% of survey respondents said the biggest benefit of outsourcing payroll is the peace of mind it provides where regulatory demands are concerned. That number increases to 63% for those businesses with 20-99 employees.
Zgoda adds that other benefits to using a proven partner include access to valuable resources such as training, informational materials, and the experts themselves.
Twenty-three percent of survey respondents said relying on the expertise of professionals was the biggest benefit to outsourcing payroll, while 19% said saving time is the most beneficial aspect of choosing to work with an outside service provider.
“Payroll, HR, and benefits are typically not a business owner’s specialty,” he adds. “Partnering with a service provider places these vitally important business functions in the capable hands of an expert.”
Learn more about how Paychex is enhancing accountants’ roles as their clients’ most trusted advisor.
About the Paychex Small Business SnapshotThe data included in the Paychex Small Business Snapshot was taken from the results of the Paychex Small Business Survey, administered by Bredin. The survey was conducted online between April 10, 2015 and April 19, 2015 and polled 339 principals of U.S. companies with less than 500 employees.