Why It Makes Sense (And Cents) For Small Businesses
The Internal Revenue Service has reported that one third of U.S. employers have been charged for payroll mistakes, with penalties totaling billions of dollars.
And, in the face of ever-changing tax regulations, it’s unfortunate how common it is to make errors that end up adversely affecting a company’s bottom line.
The biggest challenges reported by small businesses, however, are the time, manpower, and know-how required to conduct all the processes involved with payroll.
According to Entrepreneur magazine, “Processing paychecks internally… is not always cost-effective. At a minimum, [it] requires purchase of equipment, programs, and extensive training, in addition to the need to keep up-to-date on changes in personnel, deadlines, and tax requirements on an ongoing basis.”
The biggest cost, however, is manpower. As reported at vision-hr.com, “When you consider the cost of an employee’s wages and add in any benefits, that can add up quickly. If you are the owner and are trying to do payroll yourself, the cost of your time is even greater. There’s also the matter of confidentiality… an employee sharing information can cause extreme drama.”
New Membership Service
Those are some of many reasons that outsourcing payroll services makes sense for a practice and why ClubZero/Red Tray/HMI is contracting with category leader Execupay to offer its members payroll services.
Execupay, with a 40-year history in the payroll services business, is an affordable and easy-to-use service that allows ECPs to run their payroll in less than a minute — and in a single step — from a smartphone, computer or tablet.
Here are a few things you should know about the new service and why outsourcing makes sense.
• Who. Execupay is the largest privately-owned provider of payroll and human capital management software for payroll service companies in the U.S. It currently provides payroll to over three million employees, and most of their customers are small businesses, employing from 5-15 people.
• What. Payroll is now the most frequently outsourced business service in the U.S. and that trend is growing. More than half the small businesses in some areas of the U.S. currently outsource their payroll.
• Why. The Internal Revenue Service estimates that four out of ten small- to medium-sized businesses incur penalties every year for incorrect payment of payroll taxes. According to the IRS, the average penalty is $845.
• When. Payroll services — including online payroll, tax services, employee access, direct deposit, email notifications, and access to an HR library — are now available through ClubZero/Red Tray/HMI. For more information, call 844.409.1616 or go to hayesgrouppayroll.execupay.com.
Do you handle your own payroll? Or, do you outsource this process? Please share with us below and join in the conversation on our ClubZero Facebook page here.