Nearly 50% of companies in the US outsource payroll. This includes about 73% of licensed businesses with $5 billion in revenues or more. Most of these companies resorted to payroll processing to track salary expenditure and comply with various codes and regulations.
From these statistics, outsourcing payroll processing is the norm for many large enterprises. However, some businesses owners hesitate to invest in payroll automation after hearing a negative comment about this technology.
Although it’s okay to be cautious when adopting innovative trends, it’s imperative to separate facts and myths. As you make inquiries about the best payroll software, you probably come across these myths and end up having second thoughts.
This article debunks the most common payroll management myths that exist today.
1. Small Businesses Don’t Need Payroll Automation
You’ve probably heard about this myth for the umpteenth time. The reality check is that you can benefit from outsourcing smart payroll even if you have one employee. Small businesses may even benefit more than large entities.
Payroll software service providers leverage innovative technologies, including cloud-based platforms. A small business can’t invest in big-scale IT. On top of that, they automate your tax payment and filing process.
Ultimately, it’s not about your company’s size but instead if outsourcing payment processing yields a positive ROI.
2. It’s Relatively Easy to Be Compliant Without Smart Payroll
You can have experience in in-house payroll. But let’s face it, how often do you check the latest tac and labor laws, including state and federal? The high odds are that even if you ever do, it takes a while before you recheck.
Generally, small businesses tend to be the culprits for compliance fines by the IRS. Fortunately, reputable payroll processing providers are compliance experts. They wake up daily to ensure your business is on the good side of the law.
3. Adapting Payroll Management Software Is a Nightmare
The onboarding processes of payroll management software are not hectic as this myth makes it sound. Reputable service providers do this job every day for a living. Also, there is a high likelihood that you’re not their first client.
Although change can be scary or confusing, it’s inevitable. Your service provider will tell you all the files and information needed beforehand.
Depending on your payroll needs, going for the highest value package can save you a lot of time and money.
4. I’ll Lose Control Over My Payroll Processing
Of course, this is not true. Smart payroll gives you administration access. You can manage the system online and even issue payroll from your end.
Moreover, you can also access benefits and payroll tax administration. Even better, your service provider updates you on arising matters.
You can also customize your administration duties. For instance, you can suggest your employees have a Payactiv card to enhance planning. You only need to discuss your service provider and let them know you want to retain more control over the system.
Debunking the Most Common Payroll Processing Myths
Outsourcing payroll processing is for any business that wants to save time and money. Don’t let these myths hinder you from facing industry changes. Besides, it would help if you enhanced compliance for healthy competition and general business growth.
Check more articles on this site to debunk more myths about payment management software.