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How Outsourcing Payroll Saves You Valuable Resources

How does outsourcing payroll work

How Outsourcing Payroll Saves You Valuable Resources

There used to be a time when small businesses seldom considered outsourcing payroll: in-house payroll processing seemed like the only viable option for small business owners. Although time-consuming, processing payroll in-house was considered cost-effective. But things are changing at a rapid pace. For a business to make progress, sticking to the good old-fashioned ways will no longer do.

Payroll is not necessarily complicated, but it does require focus, accuracy, dedication to detail and compliance, including compliance in terms of payroll taxes. It has to be timely and it does require resources and expertise. 

Outsourcing the function to a payroll service provider in San Diego gives you an attractive, valuable and inexpensive way to reduce risks and save valuable assets which can lead to smarter investments down the line. So how does the process work and what does it mean for you and your business?

How does outsourcing payroll work?

If your payroll changes with every pay period, your payroll service will keep track of the changes and take action accordingly. This is especially convenient if you need to calculate varying numbers of work hours from week to week, see a high turnover rate on a regular basis or if you are required to pay payroll taxes in multiple states.

The service will be up to date on any changes to the applicable requirements in terms of personnel, deadlines or taxes.

You will still maintain full control over the whole process, only someone else will handle last-minute changes and payroll data entry.

What does payroll processing include?

Most providers of payroll services offer an integrated approach to payroll processing. Payroll is processed on an ongoing basis and typically includes the following:

  • Tracking payroll data and keeping record
  • Calculating payroll and tax obligations for each individual employee
  • Printing and sending or delivering paychecks, typically issued on a weekly, bi-weekly, semi-monthly or monthly basis. 
  • Issuing management reports
  • Automatic check signatures and envelope stuffing
  • Direct deposits 
  • Issuing W-2 forms
  • Optional tie-ins with 401(k) and Section 125 mutual fund plans

How can outsourcing payroll translate into business success?

Although technically a non-essential function, processing payroll accurately is extremely important, but it can also be extremely time-consuming. Outsourcing payroll represents an effective way to simplify things, enabling you to make the most of your resources and make room for progress. The benefits include the following:

  • Saving time
  • Productivity boost
  • Cost reduction
  • Avoidance of costly mistakes and penalties
  • Enhanced protection and security
  • Expert assistance and guidance
  • Better insight into invoices, payroll reports and related business records
  • Taking advantage of advanced software without added costs
  • Direct deposits
  • Minimized risk
  • Peace of mind

Take meaningful forward-thinking action with us in your corner

What does payroll processing includeEven if you have the world’s most extraordinary time management skills, you deserve to take a break every now and then instead of spending every waking moment preoccupying yourself with each and every aspect of your business. And in order to do that, you need to outsource a portion of your work scope to a qualified payroll service provider in San Diego. 

Here at David York’s Tax Service, we can help take some of the weight of your shoulders and take over everything from business incorporation, payroll and bookkeeping to tax preparation for your business or yourself. We serve all of San Diego, from North County to South Bay. Ease your mind and call to make your initial appointment today!