For growing small businesses, the job of payroll administration and bookkeeping grows ever more weighty as they add more customers, expand their departments, hire additional employees and create new vendor relationships. Adding to the complexity is the fact that the larger a company gets, the more rules and red tape they will subject to just to keep all of the gears cranking without interruption.This truism applies especially to payroll requirements, compliance with which Texas businesses must maintain constant vigilance.
Growing companies face a unique dilemma when it comes to payroll services: Do they expand their payroll departments in expectation of growth, or do they wait for growth to happen before expanding their administrative efforts? The former strategy risks putting the proverbial cart before the horse — What if hoped-for growth doesn’t happen on schedule or, worse, not at all? — while in taking the latter they risk running afoul of government payday laws and their own disgruntled employees.
Payroll services providers are offering employers new alternatives. Here is how outsourcing payroll can save time and money while helping to ensure unimpeded growth for Texas small businesses.
Payroll Services Offer Growing Businesses Numerous Benefits
One obvious advantage to outsourcing is that, in exchange for ceding control to an external provider, a business immediately improves the quality of its payroll procedures. While outsourcing takes place, these companies can focus instead on reallocating the human capital which would have gone toward payroll and putting it toward more profitable areas.
The potential benefits are many, just a few of which include the following:
- Guaranteed Payroll Compliance: Payroll tax and filing requirements become more complicated as businesses add compensation types, reimbursement methods, classes of employee, employee benefits, income withholdings and fringe benefits. Payroll services companies are hired for their expertise in labor and payroll laws and code requirements. Not only do they take the burden of navigating IRS and DOL requirements from the shoulders of the businesses they serve, but once retained they also assume liability for the tax compliance of their client organizations.
- Ease of Payroll Administration: For small businesses, when compensation is simply a matter of issuing the same series checks every two weeks, payroll doesn’t cause owners much of an issue. But once even fairly standard items such as employee reimbursements for business-related expenses or administration of paid leave are thrown into the mix, the formula starts becoming much more complicated. Payroll service companies, on the other hand, already have systems in place to handle these kinds of issues and more.
- Variety of Payroll Options: Payroll firms are often equipped with multiple ways to disburse funds; this may include writing checks, making deposits directly into personal bank accounts, or providing payroll cards in the employee’s name. They may also provide a range of reporting features such as on-demand online pay stubs and W-2’s.
Payroll Services Ease the Business of Doing Business
Payday laws are generally written to protect employees; however, they often get in the way of well-intentioned compensation plans. From incentive programs to car allowances, attempts of businesses to provide employees with additional remuneration are often impeded by ill-aimed payroll and tax laws. Too often, employers are forced to abandon such programs for fear of violating regulations.
The peace of mind that comes with placing into expert hands a never-ending task, the tedium and complications of which cause growing business in particular to shift their focus away from making money and toward distributing it, should make the more important aspects of conducting their businesses that much more achievable.
By using a qualified payroll service organization, growing Texas businesses gain high-quality payroll services upon which their employees can depend while freeing themselves up to do whatever it is they do best, whether it be building, manufacturing, or providing services of their own.