1430 Gadsden Highway - Suite 116
Birmingham, Alabama 35235
Tel:(205) 661-1185

Outsourcing Your Payroll


Benefits of Outsourcing Payroll

Should I use an online service or a local payroll processing firm?

Online services as well as big box payroll companies provide the software for the employer to process payroll but the employer must still be up to date with all of the changes. They have to take time to learn and most importantly fit the process of the online or the big box provider and, if there's a problem, payroll requires immediate corrections in order to keep the employee satisfied. Calling a toll free number with an automated attendant or a speaking with a different payroll specialist every time you call would not be attractive to most business owners when you can speak to a "real live person". At Premier Payroll Service you talk to real people; we even give you after hours contact information because we understand issues do not necessarily happen from 9:00 - 5:00.

8 Benefits of Outsourcing Payroll

In our experience, business owners outsource payroll most often for these important reasons:

1. Free Up Your Time

Outsourcing payroll can free up staff time to pursue more important value-added and revenue-generating activities. Inc. magazine recently identified payroll as the #1 task for small business to outsource.

2. Reduce Costs

The direct costs of processing payroll can be greatly reduced by working with a payroll provider. The cost to outsource to a payroll service should not even come close to the cost of an employee, software, software updates, check stock and envelopes. Research indicates that a small business with 10 employees will typically spend $2,600 per year in direct labor costs associated with payroll.

3. Avoid IRS Penalties

According to the IRS, 40 percent of small businesses pay an average penalty of $845 per year for late or incorrect filings and payments. Premier Payroll Services provides a payroll tax guarantee, ensuring that customers will incur no penalties because we take responsibility for penalties if they do occur. In many instances, this cost-saving immediately justifies outsourcing payroll.

4. Alleviate Pain

Manual payroll is a headache in the best case and a nightmare in the worst case. Business owners who outsource payroll eliminate a tiresome source of personal pain.

5. Offer Direct Deposit

Providing direct deposit is difficult if a company doesn't use an outside payroll service. Increasingly, small businesses recognize that employees want direct deposit. Not having to make a trip to the bank is an important convenience for them. More importantly for business owners, direct deposit eliminates time-consuming and error-prone paper handling and the need to reconcile individual payroll checks every month. Allow us to help your company turn your payroll to a paperless process.

6. Avoid Technology Headaches

A constant question for small business owners is whether they have the latest version of their payroll software and the most recent tax tables installed on their computer. Using the wrong tax tables can result in stiff penalties. Outsourcing payroll removes those headaches and keeps payroll running smoothly.

7. Leverage Outside Payroll Expertise

Most business owners and controllers don't have time to keep up with constantly changing regulations, withholding rates, and government forms. By outsourcing payroll, a small business can take advantage of expertise that was previously available only to big companies.

8. Avoid Payroll Knowledge Walking Out the Door

If your bookkeeper or controller gets a new job, they will walk out the door with their knowledge of the payroll process and how you do it. Using Premier Payroll eliminates that risk.