Utah small business owners often wear multiple hats. As the Chief Everything Officer, you may be responsible for payroll or have non-HR staff doing your company's payroll. While you may not be willing to justify hiring an HR employee or payroll specialist, you do have options to make sure that your payroll is accurate and compliant every time.
Outsourcing your payroll needs might be the solution you need. As a Utah small business, you should look for payroll experts in Utah. Not all payroll providers are created equal. For the most comprehensive solution and the highest ROI, partner with a Professional Employer Organization (PEO).
Why Outsource Payroll Services?
There are many reasons why a Utah small business might need to outsource payroll services. For many, the answer is that they do not have any HR staff, or their existing HR staff are so focused on other company goals that they don't have the time necessary to commit to payroll. As your company grows, payroll can become a full-time job, making outsourcing even more attractive.
1. Saves Time
Payroll takes a long time. From collecting and reviewing timesheets to entering payroll and remitting taxes, even small businesses may need a dedicated payroll employee.
By outsourcing your payroll needs, you and your employees can save time on the entire payroll process. Your PEO will process your company's payroll, print, sign, and distribute paper checks, manage electronic payroll deposits, and remit your payroll taxes.
2. Avoids Mistakes
Payroll is a complicated process that requires absolute attention. When your employees are rushing to get one task done so they can move on to the next, mistakes will happen. Even innocent mistakes can cause costly and embarrassing fines and employee lawsuits.
Partnering with a PEO gives you access to the PEO's team of payroll experts who can help your company avoid fines and make sure your state tax deductions, overtime pay rates, and business taxes are accurate. Underpaying an employee or not paying proper overtime are common mistakes that small businesses make, resulting in serious fines and reduced employee morale.
3. Enhances Security
Payroll involves dealing with lots of confidential employee information. While you should be able to trust your employee who runs payroll to keep this information confidential, you may not have processes in place to guarantee the confidentiality of employee information.
A PEO does. As a trusted payroll partner, a PEO will have state-of-the-art software for storing and protecting employee data. Keeping this information secure not only protects your employee's personal information, it also protects your company from liability for leaked confidential information.
4. Provides Regulatory Compliance
Payroll requires constant adherence to ever-changing labor laws. Depending on where your company is located, you may have to deal with constantly changing federal, state, and local employment laws.
Keeping up with employment law regulations is a full-time job itself. With a PEO, you can rely on their compliance experts to help you navigate these complex laws and ensure compliance.
5. Allows Employee Self-Service
There's more to payroll and HR than just paying employees. Time off, benefits, and tax forms are all part of this process. While they may not come into play during every payroll run, you need a trusted payroll partner who can manage all of this for you.
With a PEO and its software, your employees can request time off, saving you the time and headache of manually tracking this data. When an employee gets married, has a child, or any other qualifying life event, they may be able to adjust their benefits and can do so without involving you.
Why Outsource Payroll to a PEO?
Outsourcing payroll to a Utah PEO has many benefits for Utah small businesses. A comprehensive solution from a PEO gives you:
- A trusted partner to remit your payroll taxes
- HR experts to stay up to date on employment law regulations
- Payroll specialists to run your payroll accurately and timely
- State-of-the-art technology at no extra cost to you
- Employee self-service capabilities
Each of these items provided by a PEO will give you and your team precious time and energy back. You can redirect your resources to focus on your core business needs, working to build an attractive company culture that brings in high-quality employees who can help to increase your company's growth and profitability.
The best part about using a PEO for your payroll services is the ROI. Most payroll providers have a neutral or negative ROI. Your company pays for a service and gets the service you pay for, but nothing else. With a PEO, the average ROI is 27.2% for your small business.
Partner with a Best-in-Class PEO
As a small business, you are constantly seeking ways to cut costs and increase your growth. One of the best ways to do that is by outsourcing complex and time-consuming tasks like payroll. While you may be able to outsource your payroll needs to a payroll provider, your best ROI will come from a comprehensive partnership with a PEO.