Payroll and HR Administration
We encourage our clients to outsource payroll and HR, but to a dedicated service provider When it comes to payroll, your accountant’s role should just be to ensure that all the payroll information is properly recorded in accounting software.
There are many reasons businesses should outsource payroll & HR.
· Cost.
Over the last 10 years, payroll & HR providers like Justworks, Paychex, ADP and Intuit have made massive improvements in their processes and efficiencies, primarily because they have reached scale and they invested enormous amounts of money in technology.
· Liability.
Payroll and HR are fraught with liability: any mistake in calculation, filing or payment can trigger actions from your employees, the IRS or your sate. The IRS reported that 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings. This in itself is quite worrisome, but think of what employee lawsuits could cost if your mistakes caused them financial harm. Most large payroll providers protect you from these liabilities. If they make a mistake, they take on the fines and the lawsuits. Luckily, they make a lot fewer mistakes than small business owners,