In-house payroll software can be comfortable solution for your company – you feel in control and you have the entire workforce’s info, records, and taxes at your fingertips, but your comfort blanket may be leaving you at risk. In-house payroll management can actually complicate issues and create costly problems.
The Flaws of Perceived In-House Payroll Benefits
It can be tempting to continue to keep your payroll in-house because you get to stay in control and it feels like you are saving money. Plus changing the process often seems to be too costly and too much trouble. But is it?
Many people point to certain benefits of in-house payroll such as saving money and being able to control the whole process. However, outsourcing can actually end up saving you money and time while being far more accurate. Outsourcing payroll helps you avoid common costly mistakes such as:
- Employee over payment
- Monitoring overtime
- Maintaining accuracy
What can these mistakes really cost you? Well the American Payroll Association reports a 3-5 percent human error rate when calculating payroll manually. We based our example below on a 1 percent human error rate:
You can see how quickly the costs stack up, and this isn’t even factoring in the cost of employee time to process payroll. Can you say your in-house payroll really saves you money when the payroll managers have to put in over time every week to process payroll correctly?
Tax and payroll errors can also lead to serious costs for your company down the line. Paying fees to the IRS because of errors happens more often than you might think, with 40 percent of companies eventually dealing with expensive penalties or even facing class action lawsuits due to tax and payroll errors.
Time and Attendance: The Problem with In-House Payroll
No matter your payroll process, it all counts on clean time and attendance information going into the system. You need a robust and flexible time and attendance system to make sure that heading in to payroll processing, your time sheets don’t have any errors. EPAYs time and attendance solution allows you to:
- Reduce payroll prep time
- Limit overtime exposure
- End erroneous pay calculations
- Reduce time rounding over payments
- Allow self-service access for employees to print pay stubs
- Protect against compliance risks
- Maintain historical timekeeping data to save on fines and legal fees
When You Should Look Beyond In-House Payroll
If you have a distributed workforce, or employees with multiple or flexible pay rates, it can be extremely difficult to manage every aspect of payroll correctly with an in-house payroll system. Managing your payroll is considered one of the most important aspects of your business – not the place to be lax in your process. Compliance and accuracy are critical to your success.
Industries that Benefit from Outsourcing Payroll
- Business Services
With EPAY Systems, every aspect of payroll management and payroll tax filing is handled by our professionals, cutting your administrative work in half. Imagine not worrying about tax compliance, new taxation rules, garnishment compliance or the multitude of other details that can fall through the cracks – our system performs all of these tasks for you. Get a personalized demo today to see how EPAY can work for you.