ExpenseMatters : The Source for Expense Management

Why Online Payroll Is a Good Option for Small to Midsize Businesses

By on February 19, 2015 in General with 0 Comments

Online payroll is often viewed as a solution only employed by large businesses, but there are actually many benefits available to small and midsize businesses that opt to take advantage of online payroll solutions.

One of the most common problems that many SMEs experience with payroll is simply not having the time to handle it properly. Handling payroll can be a time-consuming task that takes away significant resources from the business. While many business owners are often concerned that online payroll will be more expensive than handling it in-house, the reality is that when the cost of an employee’s wages as well as benefits are taken into consideration, online payroll can be a cost-effective solution. The costs associated with trying to do payroll on your own as the owner of a small business can be even greater.

Avoiding the Potential for Errors and Penalties

Businesses must also be aware of the fact that changes are continually occurring in payroll. Business owners must ensure that they stay on top of changes that take place in regards to payroll processing, including filing payroll reports in a timely manner, paying payroll taxes on time, and making certain that tax documents are processed at the end of the year. This is all time that could be better spent on growing your business. With online payroll processing, business owners can be assured that they do not miss any important changes and requirements to payroll processing that could leave their businesses vulnerable. The IRS reported that 40 percent of small businesses pay an annual average of $845 for incorrect or late payments and filings. Online payroll services typically provide a guarantee that they will be responsible for any penalties should they occur.

Handling payroll in-house also presents the very real risk that confidential payroll information could make it into unauthorized hands. This type of problem can occur in a variety of situations. For instance, an in-house bookkeeper could be tempted to share information regarding the amount of money earned by other staff members. In the event that your bookkeeper should accept a new job, there is the risk that he or she will take knowledge of your payroll practices with them. By using an online payroll service, you can help mitigate this risk.

Providing Employees with Improved Service and Convenience

Online payroll services also give small to midsize businesses the opportunity to offer direct deposit to their employees. More and more employees are now requesting this service, because avoiding a special trip to the bank provides a timesaving convenience. Direct deposit also helps eliminate paper handling for businesses that can be time-consuming and prone to error. As a result, direct deposit via online payroll provides benefits to both businesses and employees.

By taking advantage of online payroll services, small to midsize businesses can leverage a number of benefits, including saving time and resources and reducing the risk for error and potential penalties that can be associated with in-house payroll processing.

Tags: , , , , , , ,

Subscribe

If you enjoyed this article, subscribe now to receive more just like it.

Top