4 Reasons to Outsource Payroll

4 Reasons to Outsource Payroll

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Payroll for restaurants

Are you a small business owner? Have you considered using a a third party payroll company? If the answer is no, we know what is most likely running through your mind: Every dollar counts as a small business owner, why would decrease my profit margins with a a third party payroll company?

We’re glad you asked. Here are a few reasons it is worth thinking through:

  1. Lower upfront costs.

    If you manage your payroll tasks with a number two pencil and a piece of graph paper, it might not cost you all that much to get your business up and running (but then, the possibility of mistakes while processing your payroll tasks by hand is great. And a mistakes with your payroll processing could cost you a whole lot of money). Otherwise, you have to pay for the software to manage all of your business’s payroll needs. This type of software is extremely expensive, especially if it is flexible and expansive enough to actually meet your needs.


    If you don’t have the resources to pay for a big fancy payroll management service (or perhaps you do have the capital, but would rather put it to better use elsewhere), a third party payroll company might be the ideal solution. Instead of paying a huge bill up front to acquire ownership of the system, using a a third party payroll company allows you to only pay a much, much smaller service fee as you use the service.

  2. Just pay for what you need today, and grow into more when you need more.

    Also, outsourcing payroll is a good idea because it allows you to start small and scale as your company grows. You might not need much when you’re first getting started; maybe a simple time card system and some benefits management. However, as business growth continues, your payroll needs will grow with it. Suddenly, you might need and HR provider, maybe risk management, and so on. When you use a third party employee management service, you pay for the services you need when you need them, and then add to it as your business grows and you need more. No need to fork over tons of cash fr a whole system when you only need a small piece to get started.

  3. Have peace of mind that you’re in compliance.

    The rules and regulations surrounding payroll management is complicated. In fact, it’s not a thing that you can figure out and then be on your happy way; legislation surrounding labor laws and the IRS’ policy on taxation change by the minute. While it is really hard to stay in compliance on your own, being on the wrong side of the governments payroll requirements is tres no bueno. This opens you up to hefty fines and penalties and can even jeopardize your entire business.


    When you use a professional payroll service, your business’s payroll practices are in the hands of professionals who have dedicated their careers to staying in compliance. They have their hand on the pulse of payroll compliance. The minute a compliance policy changes, they know it and they’re making sure their clients are protected. When you use a payroll provider rather than trying to DIY it, you can rest easy knowing that your business is in good hands.
  4. Free yourself up to focus on growing your business.
    We imagine you started your business because you love the industry you’re in and love doing what you do. It is highly unlikely that you started your business so that you could spend 40 hours per week catching up on all the payroll paperwork and making sure that all your ‘i’s are dotted and ‘t’s are crossed. Yet, as a business owner, you might find yourself doing more desk work unrelated to your industry of choice than you ever planned.


    On the other hand, using a third party payroll provider takes a huge responsibility off of your shoulders, and gives you some breathing room to focus on your business. You can use this breathing room to grow your business. You can use it to catch up on other things you need to do. You can use it to kick back and relax; we know you’ve earned it. What you do with the time that you aren’t bogged down with payroll work is your choice.
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