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Outsourcing administrative tasks is a growing concept in today’s highly competitive world of commerce. One of the most commonly outsourced tasks is payroll services, enabling more businesses to lighten the burden on their human resources and accounting departments. As you consider whether this is the right choice for your business, it may be helpful to review some of the benefits that this type of outsourcing provides.

Why Companies Outsource Payroll Services 

1. Boost Productivity

Tasks related to payroll take up a large chunk of time for your accountants and other human resources personnel. While these are necessary tasks, they don’t contribute to your bottom line. However, when you outsource your payroll needs to a third-party, you can redirect your own employees to spend time accomplishing more productive tasks. They can take on special projects or work in areas that are directly related to the business’s growth.

2. Save on Operating Expenses

Payroll ServicesOnce you outsource your payroll needs, you won’t need to employ your own CPA and you may be able to eliminate other administrative positions. Additionally, the third-party service that’s performing these tasks will charge you a fee that will be much lower than the amount you would otherwise pay in salaries and other benefits for your own employees.

3. Avoid Tax Errors 

A company that focuses on payroll services goes the extra mile to stay up to date on changes to tax laws. To provide each client with the best quality of service, they have a thorough understanding of evolving tax laws and can implement changes promptly. This can prevent your business from making tax filing errors that could otherwise cost you significantly in fees and penalties.

4. Add a Security Buffer

When you process payroll payments in-house, you have the added concern of protecting against hacks, data breaches,  and embezzlement. However, third-party services will maintain a higher level of security within their organization, which may be comparable to the security measures taken by other types of financial institutions. This helps offer an extra layer of security, while also placing liability on the third-party organization rather than on your own business. 

 

When you’re ready to explore the option of outsourcing your payroll services, contact Erie & Associates, P.C. in Texarkana, TX. They have been providing payroll and accounting services since 1989 and their licensed and certified professionals strive to stay current on the latest IRS rules. To learn more about their full range of services, visit their website. To speak directly with one of their team members, call them at (903) 792-6651.

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