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4 Reasons You Should Hire a Payroll Service


Many businesses—small and large alike—are turning to external payroll services. Not only does outsourcing the burden of paying employees an managing payroll taxes alleviate a huge hassle, but it is also a wise business decision. It’s no surprise that payroll is often the first of many services savvy business owners choose to outsource. Here are the top four reasons you should consider hiring a payroll service:

  • Efficiency - Hiring a payroll service will free up valuable time that you and your staff can utilize for doing what you do best within the business. You will have the freedom to focus on higher value tasks for growing and managing the business. Payroll service staff have the benefit of expertise, quality software, and volume, so it is likely they can complete these tasks much more efficiently.

  • Cost - For most businesses, it is less expensive to hire a payroll service than to manage it internally. This is particularly true for small businesses with less than 20 employees. It is expensive to pay an employee to print checks, manage direct deposit, submit payroll taxes, generate tax documents, and do all the associated bookkeeping. A payroll service can usually offer these services for less.

  • Accountability - It is estimated that of the small businesses that attempt to handle their own payroll, nearly half will incur costly penalties and fees due to errors. When you hire a payroll service, they assume the responsibility for making sure your payroll is compliant with applicable laws and procedures. They are less likely to make errors and most will even offer a guarantee for their work quality.

  • Compliance - Laws that affect payroll and taxes are continually changing. A payroll service offers expertise in knowing these laws and understanding how to make sure payments and filings are compliant. They are also aware of important deadlines and will ensure timely and accurate transactions. If your company operates in more than one state, this is particularly important as laws differ from state to state.

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Johannsen CPA is pleased to serve the Treasure Valley - Boise, Meridian, Kuna, Eagle, Star, Nampa, Caldwell, Middleton, Idaho and beyond. 

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