Payroll processing is one of the most integral parts of any business, but many business owners often neglect its importance.
A recent survey concluded that the majority of business owners find payroll taxes as the top financial and administrative burden. However, by simply outsourcing payroll, businesses can achieve multiple benefits.
Here are some of the most commonly circulated payroll myths every business owner should stop believing. Have a look.
- Myth #1 – My Business Is Too Small For Payroll Outsourcing
No matter whether your company has one or 100 employees, as a business owner you’re still supposed to file and compensate payroll taxes. This includes an absolute compliance for how payroll tax is calculated and paid while following always changing rules, regulations and timings. As a business owner, you’re also expected to ensure that you’ve been complying with all the payroll tax laws established by the government.
- Myth #2 – Payroll Outsourcing Is Unaffordable For Small Businesses
A recent survey showed results that every month nearly 8 hours are spend by an average business owner on payroll administration, which makes it for almost 100 hours every year.
A recent study unsurprisingly found that business owners give high value to their time. The study showed that near about one-third business owners consider every hour equal to AUD 100 and around one-fourth consider each hour equal too AUD 500. That’s lots of amount just for payroll processing. However, with payroll outsourcing this cost can be reduced significantly.
- Myth #3 – Every Payroll Outsourcing Company Is The Same
No, every Payroll outsourcing company is not same in providing services. Of course, they offer products and services which are quite similar to each other, yet you must look for the differences before hiring one. You should be aware with the things you require and ask all the questions which are in your mind for the prospective payroll company. Look for these qualities:
- Consult a reliable advisor
- Get an idea about their credibility and capability
- Search their website
- Visit their social media profiles
- Examine the online reviews about the company
- Find out more about their management team
- Search more about the value they’re offering, apart from cost-based services.
- Myth #4: Payroll Is Not About Employees, But It’s All About The Business
A lot more is expected from employers by their employees in today’s world. They have even become more habitual in evaluating their current employer compared to other employers based on a different set of offerings. Employer-employee value relationships are constantly being assessed by employees, which mean that what is being received against what is actually provided. The moment this relationship becomes sour, the employee takes back the control and starts searching for other options to maintain the balance they want.