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More and more companies, both small businesses and large corporations, are turning to outsourcing as a means of handling their payroll processing needs. For many businesses, it’s the best decision because it saves a great deal of time and money and solves compliance issues associated with payroll processing.

There are a considerable number of providers who offer highly competent and thorough payroll services, and when reliability is added into the picture, outsourcing begins to make sense from every angle. Here are some of the most useful benefits of employing the services of a reputable payroll provider.

Use the latest technology

Many of the global providers offering fully managed payroll services do so on cloud-based systems, thus allowing for greater visibility, data integrity, and audit-tracking. When all of their payroll data is centralized, businesses have much greater access to that information, instead of going through the slow process of waiting for data requests.

This greater access to data also allows businesses to integrate payroll information with all the related systems that they may have in-house, which can help their organization become more successful. Administrative costs are reduced, as well as I.T. costs, which leads to significant time savings and greater efficiency.

Businesses who outsource their payroll also gain access to advanced analytical tools, which highlight useful insights into the payroll process, as well as human resources management. Performance analytics can also help to determine the extent of any errors that might be occurring, so businesses can take steps to prevent them in the future.

Prevent errors and penalties

When a provider fully manages their payroll processing, businesses can expect far fewer errors to occur. Because payroll processing can be fairly complex, this becomes an important consideration, as any errors made in payroll processing can carry serious consequences. 

Since their livelihood and their reputation depend on staying abreast of all tax requirements and regulatory issues, providers are obliged to constantly be aware of such developments. Leaving the handling of payroll to experts reduces the chances of any mistakes being made, and that can help avoid some very costly penalties or fines. 

It also means businesses don’t have to spend as much time in-house on keeping up with all the most recent changes with regard to compliance and regulatory issues. That will help free up personnel to focus more on business-related issues like sales, marketing, or improving cash flow.

person-doing-payrollTime savings

Payroll processing can be a very tedious, time-consuming task, as it comes with the duties of monitoring benefit deductions, garnishments, paid time off, terminations, new hires, federal regulations, and state and local regulations.

Additionally, whoever is handling payroll has to prepare W-2 forms and ensure that they are sent out prior to the annual deadline. The person in charge will probably have to be dedicated to the task full-timeand it may even require a whole department of employeesif the company is very large.

Some companies are still entering payroll information via outdated data entry processes, and this can add many hours to the duties of those employees. When businesses have expert providers handling those processes, their employees and managers are free to pursue more value-added tasks in the company, making the workforce far more productive.

Better security

When processing payroll in-house, there are several risks to consider. Companies with insufficient internal controls on their payroll process are susceptible to embezzlement. Additionally, businesses that have stored sensitive personal information on unsecured computer systems are at risk of a cyberattack that compromises employee and identity information.

Most payroll providers whom businesses can outsource their payroll processing to have state-of-the-art server systems for data storage and protection, and they also have redundant backup capabilities which can recover data when necessary. In addition, a number of payroll services also use technologies that can identify when payroll fraud is being committed by someone, and they can alert businesses to the situation.

No worries about losing key personnel

What happens when a business has a single individual running its entire payroll process who then decides to jump ship and go to another company? The answer is that the business will be left high and dry because that key person will take all of their knowledge and expertise with them.

Unless the company took the time and effort to fully train someone as a backup to their payroll expert, the company leaders might find themselves in a situation where no one in the company is quite sure how to manage its payroll processing. If one or two important personnel abruptly depart from the company, they will probably be obliged to quickly train other individuals to take their place.

Training an employee on payroll processing can require a great deal of time and understanding, and the business probably wouldn’t have replacement personnel ready for the next pay period. When payroll is processed by a third party, these concerns are eliminated, because the payroll provider will have competent replacements ready to step in to provide expert service.

Expert payroll services from Employer Advantage

Employer Advantage is an outsourced payroll and human resources provider that has been helping businesses to free themselves from the hassle of HR for more than thirty years. Our expert services provide businesses with all of the aforementioned benefits and then some.

Small business owners can sleep well at night knowing that their payroll functions and payroll taxes are being handled by an experienced and reputable service provider. If you are interested in outsourcing your payroll services, email us at or give us a call at (877) 737-4408.


Take a look at our outsourced payroll services!