Payroll Outsourcing

Filed in archive Best Practice on February 26, 2007

As a business grows, the number of employee grows as well as the payroll and benefits work for these employees.

One of the business strategies recommended to growing companies is to outsource their payroll functions. Personally, I see two main reasons as to why growing companies should consider outsourcing. One of which is the cost-saving that this business strategy would bring. Another reason is that through outsourcing the payroll functions, companies would have more time on focusing on their "core tasks".

The article written by Jim Lindgren shows an example on how a company was able to save through outsourcing their payroll. Here is an excerpt from the said piece:

Sharon Maurer managed her Lawrence company's payroll for a couple of years after starting giraffe-X Graphics in 1993. Maurer kept track of the tax withholding, printed the checks for employees and made the tax payments for employees of her company, which imprints apparel such as T-shirts. But then she received what she called great advice: As her business grew, payroll would become increasingly complicated and take her away from her other duties as president. She now employs Paychex to manage payroll for her seven employees, who work in a converted mule barn at 5746 Wheeler Road near the old Fort Harrison.

Before considering outsourcing though, be sure that you know what to expect and research about outsourcing and your choice of outsourcing companies. In that way, you would be able to know and get the service that you really want.