Outsourcing payroll is not the only option for small businesses. When it comes to payroll processing, there are many ways it can be done. Which is best way for your business will depend on time, knowledge, comfort level, whether you need job costing, turnover rate of staff, the variety and types of benefits your company offers and the complexity of your payroll.

Many people assume that the least expensive way to do payroll is in-house. While that may be the lowest in monetary terms, what is often overlooked is how much time it takes and the cost of the staff processing the payroll.

To help you make a decision on what’s right for you, take the hourly rate of the person(s) doing payroll and multiply the hours spent on timesheets, revenue dealings, and anything else payroll related like adding/removing employees, changing employee benefits etc. and compare it to a set fee you might pay to have it outsourced.

Payroll processing options

• You can completely outsource payroll. There are times when it’s best just to let someone else handle it – they know it better and you have more productive work you could be doing. CITS can offer you this service, just contact us for a quote.
• Outsource the payroll taxes and filing tax forms – If you find payroll taxes confusing or simply don’t want to handle them, this is a nice compromise. Again, CITS can offer you this service..
• Completely in-house. If you go this route, Herbst HRM Payroll Software will be your best friend.   Entering payroll data is extremely quick and easy. Company and employee information is input and the default tax set up and rates are used to allow instant payroll processing. Wages and salaries, taxes, deductions and benefits are automatically computed for each person. Employees’ job sheets can be imported into timesheets and processed through the payroll system to calculate all payments due.

So, take some time to calculate what it costs to process payroll in-house, the benefits of having it in-house and compare those costs to outsourcing (all or part) – in terms of cost, liability, and what else could be done if staff spent less time on payroll. One of our hightly experienced staff can help you evaluate your options.

If you would like to see if Herbst HRM Payroll Software will be a suitable solution for you, just schedule a free, quick demonstration.