Payroll is one of the single most critical elements of both financial and HR management for any business — and even more so for SMBs, (small- to medium-sized businesses) where employees are the foundation of success. So making the right decisions about which vendor should handle your business’s payroll is a critical step.

For all but the very smallest and very largest businesses, outsourcing payroll is an extremely common and highly recommended practice. This checklist will help you determine whether your company is ready to outsource payroll, as well as assist you in managing the decision-making process and evaluating potential
providers.

Be sure that you are making the right move and that your company’s top executives and financial officers agree with the decision to outsource payroll.

Advantages of Outsourcing

• Outsourcing reduces management time and effort, allowing you to focus on your business.
• Outsourcing facilitates transparent adoption of changing federal and state payroll and tax regulations. You do not have to track these complex issues yourself.
• Outsourcing increases the ability to control the time frame of making payroll changes — particularly if you choose a solution that can be accessed online.
• Outsourcing cuts training costs
• Outsourcing may very well reduce capital-equipment and software costs.
• Outsourcing offers automatic backup of payroll data off-site
• Outsourcing eases the process of managing rapid growth or high turnover.