Payroll Outsourcing: It’s Not Giving up Control

Payroll Outsourcing: It's Not Giving up Control

The American entrepreneur is a fiercely independent individual who takes extraordinary pride in building a business from scratch. But what happens when his or her successful business venture leads to in-house payroll being more trouble than it’s worth? The business owner can continue handling payroll in-house or contract with a payroll provider like BenefitMall.

Though more small businesses are turning to payroll providers every year, there are still some insistent on keeping things in-house. It has been suggested that entrepreneurs are much more reluctant to give up in-house payroll because they see it as giving up control. What they do not know is that their perceptions are the exact opposite of reality.

Outsourcing payroll functions is not giving up control. It is liberating. Not having to invest time and resources in payroll function liberates the entrepreneur to focus energies elsewhere.

  • Storming the Prison of Ignorance

In keeping with the idea of liberation, think of outsourcing payroll as storming a prison of ignorance. That prison of is one that holds hostage HR department personnel who really do not have the knowledge or skills to handle payroll efficiently. They struggle through payroll at the end of every pay cycle, trying to make sure everyone is paid accurately and on time without running afoul of the law. The pressure is so great that staff actually dread the end of each cycle.

Outsourcing payroll takes all those tasks away from in-house staff and puts them in the hands of specialized experts. From that point forward, it doesn’t matter that those staff members lack the knowledge and expertise to do payroll. In fact, they can now be utilized in areas where they do have the appropriate knowledge and skills.

  • Keeping the Company Lean

Another way to look at the liberating effects of outsourced payroll is one of getting rid of excess weight. Imagine a plane overloaded by cargo prior to take off. That plane will struggle to get off the ground. Even if it does, there will be a significant risk of crashing throughout the flight. The only solution is to get the excess weight off before the plane takes off.

The company still doing payroll in-house despite not having the proper resources is like that plane overloaded with excess weight. It may get off the ground for the next several flights, but at some point, it is going to crash. Then the messy process of cleaning it all up will follow.

Outsourcing payroll is like ejecting the excess weight from the airplane. The company (being the plane) can now soar to greater heights than ever before because payroll is not weighing it down. Doesn’t that sound liberating?

  • Keeping Uncle Sam at Bay

The last way of looking at payroll liberation requires no illustration at all. It is actually quite simple: outsourcing payroll to a third-party provider is very effective at keeping Uncle Sam at bay. How so? By letting a payroll provider handle tax withholding, reporting, and payments. Outsourcing means no longer having to worry about keeping Uncle Sam happy because you have an expert doing it for you.

It’s easy to think of outsourcing as giving up some measure of control. But it’s really not. When you outsource your payroll, you still maintain control over every aspect of your business. Indeed, the payroll provider can only act on your behalf and at your direction. Rather than giving up control, outsourcing is more of a liberating experience. It takes one of the things weighing your company down and puts it in the hands of another organization that can do it better.