STPS

Problems With Doing Payroll In-House

Handling payroll internally might seem like an economical option for small companies, however, for owners who lack knowledge of payroll management complexities, it can quickly become a problem. This article will examine some of the issues that often occur when companies attempt to handle payroll in-house. It will also help you consider the reasons why outsourcing this crucial aspect of business operations may be a better option.

Changing Laws and Regulations

One of the most difficult aspects of in-house payroll management is keeping up with constantly changing laws and regulations. Payroll regulations can be complex and are frequently subject to change, particularly in the areas of taxes and benefits. Keeping up with these changes requires effort and specialized knowledge. Furthermore, failure to comply with payroll laws and regulations can result in significant fines and penalties, which can be devastating to small businesses.

Accuracy

Accuracy is another problem associated with in-house payroll management. A single miscalculation, such as an incorrect tax calculation, can cause employees to either be overpaid or underpaid. This can not only affect the financial stability of the company, but it can also harm the employee-employer relationship by eroding trust and lowering morale. Incorrect payroll information can also propagate onto other important tax forms, like W-2s, and cause further problems in the future.

Time-consuming

Managing payroll in-house can divert precious time and resources away from the core functions of a business. Business owners may spend numerous hours each week updating payroll records, computing taxes, and producing paychecks, instead of focusing on growing the business and enhancing its operations. This allocation of time and energy could be better utilized in other areas that can drive the company’s progress.

Security

Security is another significant issue with in-house payroll management. Payroll data is sensitive, and businesses must protect it from unauthorized access and potential breaches. Keeping track of employee data, tax information, and payment records necessitate the use of a secure system, which many businesses lack the resources or expertise to implement in-house.

Costly

Lastly, in-house payroll management can incur significant costs, especially for companies with a large workforce. The expenses of obtaining necessary software and hardware, training, and maintaining these systems can quickly escalate. In addition, the financial impact of mistakes and penalties stemming from inaccuracies can be substantial.

Bottom Line

While in-house payroll management may seem like a cost-effective solution for small businesses, it can rapidly become a complicated and resource-intensive process. Business owners who lack expertise in payroll management may find that outsourcing this critical aspect of their business to a payroll service provider is a more efficient and cost-effective option. These providers possess the expertise, experience, and resources needed to guarantee accurate, efficient payroll processing that complies with all relevant laws and regulations.

 

Here at Superior Trucking Payroll Service our mission is to Help Trucking Families.  We are willing and able to help all trucking families but our core mission is to help the “little guys”, those with 20 or less employees. These companies don’t have a lot of resources for in-house payroll departments.  We offer our expertise to make the payroll process easier and less stressful, any way we can.  We know trucking and understand how complicated running a trucking company can be. Trying to keep your trucks moving and drivers paid is a lot of work.  Do you need help?  Click below and allow us to show you how we can help.

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Written by Melisa Bush

With over 15 years of experience working with and for trucking companies, Melisa has no problem understanding the complications that come with trucking payroll and with navigating special circumstances.

Before coming to Superior Trucking Payroll Service, in 2011, Melisa worked for a trucking company with 50 trucks. She was the one who processed the driver’s miles and expenses.

Because of this experience, she understands the challenges our clients go through each week while preparing their payroll data for us. Customer service is #1 for Melisa. Her goal is to treat our clients like people with true and real needs, not just another number.

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