Like clockwork, the rush of payroll and tax filing deadlines sweep in. To avoid penalties and fees, due dates cannot be postponed even if it derails other important business initiatives. These kinds of complex, recurring mandatories can really hinder company growth. Outsourcing payroll and tax administration is a cost-effective option that allows companies to concentrate on their core competencies.
Free up time to focus on strategic growth
While essential, payroll and tax administration are non-core functions. They don’t generate revenue but time and resources must be allocated to make sure they are handled properly. With the complexities of ever-changing legislation, time requirements can be extensive. The last thing a company needs is an unexpected notice from the IRS. That leaves everyone scrambling to figure out what happened, rectify the issue, and making sure it doesn’t happen again. This is time most companies cannot spare.
Expertise brings peace of mind
Whether intentional or not, errors on payroll or taxes are subject to hefty government fines. Companies that specialize in managing payroll and taxes bring a broad range of industry experience and a deep knowledge of the issues, tax agency “nuances”, and legislative changes. Work arrangements are more varied than ever with remote work, flexible hours, out-of-state employees, overtime laws and more. Partnering with a company that understands the implications of evolving workforce trends is critical. They can anticipate issues and make sure everything is compliant. Employers can rest easy knowing everything is being handled by a team of experts.
Save money and mitigate risk
Companies lose money every year from withholding mistakes, incorrect deductions from exempt employee’s salaries, inaccurate calculation of pre-tax and post-tax deductions, improper classification of employees and not keeping up with new legislation. These missteps could result in retroactive payroll taxes, penalties and interest charges. Managing payroll is often more complex than employers realize. When you add up the time it takes to understand IRS guidelines, local, state and federal laws, it’s much more cost effective to outsource.
From payroll and tax administration to comprehensive benefits packages, MidwestHR a Chicago PEO, provides complete HR services. A leading Certified Professional Employer Organization (CPEO) in Illinois, we understand every business has different needs. That’s why we offer a la carte services without a long-term contract, so employers can choose to outsource part or all of their HR functions. Our top priority is becoming a trusted partner so you can focus on growing your business. Give us a call 630-836-3000 to learn more about our payroll outsourcing services and how we can help.