Pitfalls of Doing Your Own Payroll
Managing payroll, especially for small business owners, can be exhausting. Keeping up with employee time, deductions, ever changing tax codes and tax laws and everything else that goes into a paycheck becomes over whelming and extremely time consuming. The pitfalls of doing your own payroll is a huge expense and burden for a small business.
Maybe outsourcing payroll to a 3rd party, like Adminitor, isn’t a bad idea after all. Especially if the payroll provider can add additional value and services that help your company become more successful by allowing you more time to focus on what you do best.
Let’s learn more about some of the pitfalls of doing your own payroll.
Understanding and Having Knowledge of Everything Payroll Related is a Big Job.
It is a real struggle to keep up with all the changes, especially in today’s world. You are not alone when you feel like you are going crazy. There is a lot to learn and a lot to keep up with. Having a dedicated employee to manage your payroll is imperative if you plan on getting other important tasks completed. But can you afford the additional salary? The overhead expense of another employee, dedicated to payroll alone, may not be in your budget. Not to mention, finding the right person that is detail oriented, trustworthy and knowledgeable in tax and payroll laws is almost impossible. Let’s not forget about the risk involved with having only one person dedicated to processing payroll for your company. What happens when they are out sick or want to take a vacation? Do you have a back-up plan?
Processing Payroll on Time and Accurately is Vital.
Let’s face it. None of us work for free. We all have responsibilities such as bills and other costs of living expenses that we need a paycheck to cover. Many of us work paycheck to paycheck, meaning we need our paycheck when payday arrives. When we are not paid on time, we lose trust with our employer. As a business owner, the last thing you want to be known as is an unreliable company that can’t pay your employees on time.
Other things you don’t want to encounter are mistakes. If your employees are paid the wrong amount or find mistakes in their taxes or other with-holdings again puts your company at risk of losing your employee’s trust. Mistakes also set your company up to receive expensive consequences. One of the best ways to retain employees, is by having a payroll process that works. Payroll should be paid on time and accurately.
Processing payroll is a very tedious process with many intricacies.
You will spend a lot of time adding up employee hours. Especially if you are still using paper time sheets. Trying to figure out missing punches or how to read someone’s writing is always a pain. And then there are taxes to be calculated. Making sure you are up to date on any recent tax changes is always necessary. Another time-consuming process is how employees get paid. A lot of small businesses are still printing or writing checks. Then waiting for them to get signed before they can be passed out. Let’s not forget about the end of quarter and year end filings as these are equally important and required. Everything related to processing payroll takes time and time is money.
The many pitfalls of doing your own payroll often lead businesses to outsource payroll services to 3rd party suppliers, like Adminitor.
Adminitor is experienced in processing payroll for companies large and small. Adminitor stands apart from other payroll providers by learning your business, building relationships with your company and offering additional services, such as time clocks, to help improve your overall experience, save you time and provide advisory services that ultimately set your business up for success. Our on-hand CPA’s provide the knowledge and experience your payroll employee doesn’t have. When you realize how much time you have actually been spending on processing your payroll you will wonder why it took you so long to make the change. Invest in your future by letting Adminitor help you with your payroll services today!
Thinking about Outsourcing your payroll?
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Adminitor provides custom payroll, time and attendance and human resources programs to meet the specific needs of your organization - allowing you to focus on your customers!
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LaGrange, GA 30240
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