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3 Benefits of Working With a Payroll Company

Companies and small businesses can benefit from working with a payroll company. Since human resource (HR) management is a key pillar in the success of any business, a payroll company can help a small business in some of the basic duties associated with this role. Outsourcing some HR functions like payroll management can help a company thrive. Here are three benefits to consider.

1. Minimize Errors

Payroll errors are one of the most common HR mistakes that can happen. Overpayments and underpayments can have serious implications for a company. According to Fit Small Business, 25% of all workers have had paycheck errors. These errors are typically caused by human error. If undetected, these early errors could have a serious effect on either the employee or the company.

One consequence of payroll errors is getting in trouble with the IRS. Payroll affects the amount of taxes a business is required to pay. When these errors occur, one could submit the wrong tax return information. It could also have serious implications on the amount the IRS expects from a company. Since a payroll company solely focuses on managing payrolls, they have systems in place that minimize the chances of such mistakes occurring.

2. Maintain Employer Compliance

Another major benefit of hiring a payroll company is that it ensures that the employer has complied with all necessary employment laws. A payroll company is designed to ensure that its clients have complied with both state and federal requirements. These may include safety inspection laws, Equal Employment Opportunities Commission standards, federal laws on harassment, and many others.

Secondly, the payroll company helps with the employee standards and procedures policies. They help you come up with progressive discipline policies, drug and alcohol abuse policies, and paid time off (PTO) policies. With the help of a payroll company, one is able to comply with all these laws and avoid trouble.

3. Support With Recruiting

Another key benefit of working with a payroll company is their assistance in recruiting. The success of a business heavily relies on getting the right people to perform certain tasks. One of the challenges experienced by small businesses is retaining employees. Working with a payroll company, especially one that also offers human resources consulting services, can help you ensure that only top talent enters your business.

A payroll company is essential to the success of a small business. Instead of struggling with all HR issues, a small business should outsource payroll services while they concentrate on more important matters that promote the success of the business. Contact Registub to get started today!