The Top 11 Signs You Should Outsource Payroll
As a restaurant owner, you have to juggle a number of priorities, one of which is paying your employees. With ever-changing tax laws and the complexities of both the Affordable Care Act and the new Department of Labor overtime regulations, it might be time for you to consider outsourcing your payroll.
What are the top signs that you might want to consider outsourcing?
1. You’re Spending Too Much Time on It
Payroll can be a time-sucking activity that takes precious productivity away from both you and your staff. Outsourcing your payroll could allow you to refocus on other priorities.
2. The Cost of Managing Payroll is Eating Your Budget
Not only do you have to incur salaries and benefits for your payroll staff, but there are other costs too, like printing and distributing checks and reports.
3. You Don’t Have Great Internal Controls
Potential fraud is one reason why outsourcing may make sense. Having a fresh set of eyes from an outsourcing firm provides another layer of protection. An outside payroll provider can identify red flags that could indicate a potential fraud issue in your restaurant.
4. Accuracy is a Concern
Payroll mistakes happen, but they can be costly to your restaurant. Chances are good that a payroll services firm will make fewer mistakes than your staff, given that they stay current on tax laws and have processes in place to catch mistakes.
5. Your Restaurant is Growing
Growth is great, but it often comes with complexities. If your restaurant is opening locations in other states, staying on top of payroll and state taxes will be a challenge.
6. New Department of Labor Overtime Rules May Affect Your Business
With the new salary threshold of $47,476 or $913 per week for non-exempt employees, restaurant owners are scrambling to decide how to comply with the new rules. One of the key challenges is tracking time for those employees now considered non-exempt and making sure your payroll is accurate.
7. Affordable Care Act Reporting is Overwhelming
Complying with the ACA is a challenge, particularly since the reporting requirements can be ominous. Payroll service providers know exactly what needs to be reported or tracked, which lessens the burden on you and your staff.
8. Speed and Seasonality
Managing payroll is time consuming. Specialists have terrific technology so they can manage payroll quickly. They can also help manage payroll when you’re staffing up for peak seasons, like the holidays when you need to be focused on other parts of your business.
9. You’d Like to Offer Other Payroll Benefits to Your Employees
Direct deposit, pay cards, and the ability for your employees to manage their payroll and benefits online are really important. Today, offering these features to employees is an expectation when you’re recruiting new staff to your restaurant.
10. Your Staff Tends to Turnover
If you have a revolving door in your payroll department, you’re probably spending time (and more money) having to find and train new staff. Sending your payroll to a service provider will keep the disruption from these changes to a minimum.
11. You Can’t Sleep at Night
Peace of mind is worth the investment to outsource payroll. Not having to worry about payroll will give you more time (and energy) to focus on other aspects of your business.