Simplifying Payroll: Outsourcing Dos and Don’ts

If you’re like most small business owners, you dedicate one entire workday (8-10 hours) per week to HR tasks.

On the other hand, maybe you already have an internal HR department that handles your payroll taxes, worker’s comp, and other necessary matters. 

Either way, you might be wondering if it’s time to consider payroll outsourcing. What payroll outsourcing benefits can you hope to gain by doing so? And most importantly, how can you find a reputable payroll outsourcing company to work with?

Keep reading as we discuss the dos and don’ts of how to outsource payroll.

DO Keep Some Internal Staff

Let’s say you’ve found a reputable company like to partner with. To move forward and slash costs, you might be tempted to dissolve your entire internal payroll department.

While you might understandably trim some staff, it’s best to keep at least one in-house payroll expert onboard. Why? 

They already know the ins and outs of your company, your employees, and relevant tax laws. They’re an invaluable liaison between your business and the outsourcing company. They’re also the ones most likely to catch any mistakes or errors in payroll processing.

DON’T Overlook Special Cases

Let’s be clear: Outsourcing will not fix any problems you currently have with your payroll operation. Also, every company has its own idiosyncrasies and “exceptions” when it comes to its staff.

When you partner with a payroll service, you’ll need to communicate clearly and tactfully so you’re all on the same page. 

For instance, let’s say you have one employee with special overtime calculations or vacation allowances. You can either continue to handle their paychecks in house, or you can communicate the “exceptions” to the payroll provider so they know to make the needed changes.

DO Communicate Clearly With Your Staff

If your HR department hears the word “outsourcing,” they may easily panic. Assure them that they’re not becoming obsolete — in fact, you’re making this change so they can work more efficiently.

There are likely to be other changes that come with the new relationship, such as online employee portals or direct deposit paychecks. Don’t just spring these changes on your staff — educate and empower them to embrace the positive changes.

DON’T Forget It’s a Working Partnership

Some outsourcing tasks are “set it and forget it,” but payroll isn’t one of them. It’s still ultimately up to you to watch for (and point out) any mistakes or discrepancies.

Remember, you and your payroll provider are playing for the same team. You need to watch each other’s backs and hold each other accountable in a tactful, professional way. If you do, you’ll form the backbone of a successful relationship for years to come!

Is Payroll Outsourcing the Solution for Your Business?

Payroll outsourcing won’t magically solve your HR problems, but it will streamline the way you run your business. Most importantly, it will free your valuable time so you can focus on the core aspects of your company.

If you do decide to take this path, refer back to the tips listed above to ensure a successful transition for all.

Now that you know how to outsource payroll, what’s next? Keep browsing our blog for more great business and tech advice.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button