It’s expensive to pay employees, and I’m not just talking about salaries and benefits.
The payroll process is pricier than many business owners realize. It costs an average of $2,000 per employee per year for a small or mid-sized company to handle payroll. In addition, up to 40 percent of businesses in the United States are given an average of $845 in IRS penalties each year.
These costs add up and can really hurt a company’s cashflow. We’ve already discussed how loss prevention and cost containment can help your business, but a professional employer organization (PEO) can also save you money and time by handling your payroll.
Preventing Penalties
You probably didn’t go to school to be an HR professional, so you shouldn’t be expected to understand all of the payroll penalty risks you face each day. But the people who work for PEOs are experienced HR professionals who can make your business simpler, safer, and stronger.
For example, many PEOs assign a team of HR experts to your account. These professionals will help manage tax records and the storage of necessary payroll documentation, reducing your responsibility and liability in the process.
Saving Time
Many PEOs like Group Management Services also provide you and your employees with anytime, anywhere access to tax and payroll information. Plus, you can realize efficiencies in tracking paid time off and in direct-depositing paychecks that you never thought possible when you did it on your own.
Yes, you’re still involved in the payroll process; PEOs just make it much faster and easier.
Making Payroll Easy
Saving money is great. It’s even better when you can cut costs while streamlining a part of your business. Contact us today if you have any questions about payroll.