3 Reasons You Should Outsource Your Payroll to a PEO

Even for a small company, processing payroll can be quite an undertaking. It requires time, careful attention, and an understanding of your industry’s rules and regulations. What’s more, if your payroll is not done correctly, then you run the risk of getting slapped with an IRS penalty. With that in mind, below are three of the top reasons why you should consider outsourcing your payroll to a professional employer organization (PEO) like JanusHR.

Save Time

With all that goes into keeping track of benefits deductions, federal and state regulations, wage garnishments, overtime, and paid time off, you probably spend quite a bit of time doing payroll. Plus, you are probably tasked with preparing W2s and ensuring that they’re sent out on time. By outsourcing your payroll to a PEO that has established methods for processing payroll efficiently and correctly, you’ll probably feel like there are more hours in the day with which to accomplish other important tasks.

Save Money

In the business world, time saved is money saved. Take a moment to think about the time it takes to complete tasks, such as calculating payroll for each employee; printing, signing, and distributing paychecks or pay stubs; preparing and remitting payroll taxes and returns; and generating payroll reports for in-house or accountant use. You’re already paying one or more of your employees to complete these tasks, so why not put this money toward having your payroll done by experts? What’s more, payroll-processing software can be costly, as can having to mail checks to employees who are offsite. While these may not seem like major expenses, they can certainly add up over time. And, when weighed against the cost of outsourcing your payroll to a PEO, you may be surprised at just how much you are actually spending to do your payroll in-house.

Avoid Penalties

According to the IRS, roughly 40% of small businesses each pay about $845 per year in penalties for late or incorrect filings. Not only is this money that could be put back into your business, but with ever-changing rules and regulations, it can be difficult to stay compliant if you’re not up to date with all the latest laws. However, when you outsource your payroll to a PEO, you can rest easy knowing you’re covered.

 

Contact JanusHR today to learn more about how you can benefit from outsourcing your payroll processing to our experienced professionals.