Do you ever wish you didn't have to go through the hassle of preparing a payroll? Maybe it was simple when you just had one or two employees, but your company is growing and it's becoming more complex. Some companies have a dedicated payroll manager—but that can be expensive. Other businesses have found find it useful to outsource this process to one of many companies that specialize in payroll. How do you know if this option is right for you? Here are some things to consider.
- How big is your company? One of the biggest concerns when it comes to answering this question is how many employees your organization has on staff. However, the answer isn't cut and dry. Small companies like to use payroll services so they don't need to employ a dedicated payroll department. Larger companies like to use them to maintain consistency.
- Do you need more than just payroll? There are other reasons to consider an outside vendor, especially if your small company also wants insurance or other services. An outside vendor may be able to meet a wide variety of your needs.
- Are your employees exempt or nonexempt? Exempt employees are traditionally paid an annual salary. Nonexempt are usually hourly employees who receive hourly pay and qualify for overtime. The more complicated the payroll process, the more important it might be to outsource it.
- How often is payday? Another thing to consider is how often you pay your employees. Salaried employees are frequently paid twice a month. Hourly employees might be paid every two weeks or every week. This is something a payroll service can work out with you to be the most effective for your type of business.
Let us know if you'd like to explore some payroll outsourcing options.
