Why Payroll is One Function You Should Outsource

By James Nichiporuk, Vice President, Strategic Staffing Services

why you should outsource payroll

For all businesses, the payroll function is a reality—many times a time-consuming and costly back-office reality with substantial penalty risks if not performed in a timely and error-free manner. Even one significant penalty for a tax filing omission or employee misclassification, and the costs to the business can quickly become overwhelming.

For many organizations, an outsourced payroll strategy, in which an outside partner manages all payroll administration, is proving valuable in reducing costs, creating efficiencies, enhancing customer service for employee inquiries, and improving regulatory and reporting compliance.

There are many reasons companies seek a partner to take on the legal and financial responsibilities of wages, deductions, unemployment insurance, workers compensation, tax filings, and more. Regardless of what drives an organization to look outside for help, there are benefits that most all organizations can expect to see by outsourcing to a knowledgeable and reputable partner:

Reduced Costs:

Using out-of-date payroll software or the incorrect tax tables can result in costly penalties, errors, and omissions. However, the maintenance fees and upgrade costs needed to keep this software up to date present additional fixed expenses. Outsourcing to a payroll partner ensures reporting compliance without ongoing technology advancement and maintenance costs, and reduces the costs of hiring, training, and maintaining an in-house payroll administration team.

Improved Processing Time:

One of the major payroll challenges is simply the amount of time it takes to process. Employees and tax agencies (local, state, and federal) must be fully paid, on time, every time. Late payments can, and most often do, result in penalties. An experienced payroll partner provides access to proven methodologies, tools, and advanced technologies, such as on-demand, web-based timesheets; enables faster, more efficient payroll processing; and helps ensure that all filing deadlines and deposit requirements are met.

Experienced and Trained Payroll Teams:

An experienced partner maintains payroll teams that keep abreast of state, federal, local, and industry-specific regulations so you don’t have to. Dedicated staff stay up to date on all changes in personnel, deadlines, and tax requirements that could affect payroll, ensuring company compliance. The absence of this knowledge creates an environment where mistakes are easily made.

Improved Employee Support and Service: 

Dedicated payroll and tax specialists can provide customer support for payroll inquiries from employees, keeping you in compliance and your employees informed. Outsourcing payroll to a reliable partner not only results in the benefits above, but also provides the reassurance that your payroll needs are being addressed in a compliant manner, every time. 

Interested in learning more about how outsourcing payroll can benefit your organization? CTG can help. Leveraging more than 50 years of staffing experience, responsive account and staff management teams, robust human resources, payroll, legal, and finance organizations, and automated payroll process and timesheet tools, CTG’s offerings reliably address each client’s unique needs by providing quality services in a consistent, efficient, cost-effective, and value-added manner. 

To learn more about CTG’s Payroll Outsourcing Services, contact us today at info@ctg.com or +1-716-882-8000.


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