If you’re a small business owner, you know that there are a million and one things you need to take care of on a daily basis. From keeping track of inventory to dealing with customer service issues, your to-do list is never ending. One of the most important and time consuming tasks on your list is payroll.

Payroll involves many important responsibilities, such as calculating employee hours, managing vacation and sick time, and making sure taxes are withheld correctly. It’s a complex and crucial task, and one that can take up a significant amount of your time. Outsourcing payroll can free up your time so that you can focus on other areas of your business.



Is outsourcing payroll the right solution for your small business? Let's take a look at the pros and cons of outsourcing payroll so that you can make an informed decision.

Pros of Outsourcing Payroll for Small Businesses:

One of the biggest advantages of outsourcing payroll for small businesses is cost savings. By outsourcing the payroll process, you can save money by avoiding the cost of hiring in-house employees to handle payroll and the associated taxes, software, and other expenses. Additionally, you won’t have to pay the salaries of these employees, eliminating yet another cost. The other major benefit of outsourcing payroll is the extra time it can free up for you. 



Dealing with payroll can be incredibly time-consuming, as you have to manage all of the different taxes, deductions, and pay stubs. By outsourcing this task, you can focus on other aspects of your business, knowing that your payroll is in the hands of professionals. 

A late or inaccurate payroll filing can result in penalties and interests. Leave it to your outsourced payroll pro to take care of it on time!

Cons of Outsourcing Payroll for Small Businesses

There are some downsides to outsourcing payroll for small businesses. 



The first and most obvious is the cost. While you can save money by avoiding the costs associated with hiring and training in-house payroll staff, the fees associated with outsourcing may add up over time. Additionally, you may have to pay additional fees for software or updates. 

It can be difficult to keep track of the process. When you outsource, you’re trusting a third-party to handle a very important responsibility – one that can have legal and financial repercussions if done wrong. While most payroll companies are reliable and trustworthy, there are some that are less so.

Is Outsourcing Payroll Right for Your Small Business?

The answer to this question depends on your specific situation. If you’re looking for ways to save money and free up some time, then outsourcing payroll may be the right choice for you. 



If you’re not comfortable with giving up control of this important task, or if you don’t have the budget to pay for an external payroll service, then in-house payroll staff may be the best option. Ultimately, it’s important to weigh the pros and cons carefully in order to make the best decision for your business.

By following these tips, you can make sure that you are getting the most out of your tax planning efforts. Call us on (571) 440-7777 or EMAIL one of our friendly team to book an appointment today.