Why Should You Outsource Your Payroll?
Non-core business functions should be outsourced to ensure that your business focuses on the core-functions in a better manner. In this way, your business will have more time to focus on the core functions that can lead to it growing in the long run, rather than diverting and splitting its time amongst non-core functions as well.
What is a Non-core function of the Business?
A non-core function of the business can be one that is not something that generates direct profit. In this way, your customers are not actually paying for it. They are paying for the core functions of the business which add value to the products and services they are to get. Although a non-core function of the business is essential for it strategically, it does not add any sort of value or differentiation to the business from any of its competitors. Some non-core functions of the business include administrative services, back office activities and even payroll. For this reason, these functions are good enough to be outsourced.
Is Payroll worth outsourcing?
There are many gains of Payroll outsourcing. It takes a lot of time and effort to identify the correct outsourced service providers fit for your company and then transitioning the entire function to a third party service, but in the end, it is definitely worth it. Here are a number of long-term advantages you can gain from payroll outsourcing that will convince you to go through the efforts of doing so:
- When you outsource the function of payroll, your resources that were involved in this function become free and can be used towards a more important and core function that can greatly add value to your business. Also, if payroll is not carried out properly, it can hurt your business’s reputation in the long run. Although it may not add any value, it can take away value if not carried out efficiently. This is because of the various federal, state and local laws you must ensure that your company is complying with when it comes to payroll and employees’ rights. These include tax reporting or remittances, etc. They are legal requirements and if even slightly ignored or disregarded, your company could be in a lot of trouble legally.
- Through outsourcing the function of payroll, you are giving the responsibility of it in the hands of well trained and professional experts. Not only do they possess expertise in this field but are also well equipped with better technology and techniques. In this way, the entire payroll function faces a complete upgrade which allows you to compete with competitors in this way. The complexity of all the laws are the responsibility of the outsourced firm who is liable to comply with them all. This acts like a huge burden removed from your shoulders. There are more than 10,000 federal, state and local tax laws which you need to comply to, it would be a great hassle if you were to learn them all.
- The risks and costs associated with the function of payroll that you were carrying out traditionally as a business reduce immensely. The costs include the various penalties you may have to pay if you disregard a single law accidentally.
It is important you investigate and look for a good payroll outsourced firm which can handle the needs of your business’s function effectively. This would greatly benefit your business and allow you to focus on more important and core functions in the long run. It would all be worth it. Contact us to learn more about our Payroll Solutions in Thailand.