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8 Ways Outsourcing Payroll Helps Your Non Profit

by
Bret Willoughby
on
7/10/2016
8 Ways Outsourcing Payroll Helps Your Non Profit

Considering outsourcing responsibility for your payroll? There are plenty of non-profit organizations that have already made the switch. Payroll is the service that is most frequently outsourced by organizations and there are some excellent reasons why. We think that tasking payroll to somebody outside of your firm has a lot of benefits.

Here are just a few:

 1. Take Advantage of Outside Expertise

When you assign somebody on your staff to handle your payroll, you’re relying on them to know everything that they need to know about existing laws, tax implications, withholding rates and regulations. They also need to have access to all of the appropriate forms, and to constantly stay updated as laws change. Instead of requiring an employee to have all of that knowledge and to invest valuable time in staying current, when you use an outside firm with payroll expertise you can rely on them.

 2. Provide Employees with Direct Deposit

Direct deposit is becoming an increasingly popular convenience for employees, but it is often a challenge for organizations to set it up for them when their payroll is handled internally. Outside payroll services are already set up to facilitate this type of payment, and also eliminates the need to keep track of everything on paper and to cut individual checks.

 3. Eliminate Errors and IRS Penalties

As much as employers who manage their own payroll try to do everything accurately, the IRS says that four in ten end up having to pay fines and penalties each year because of filings that are prepared incorrectly or submitted beyond the deadline. These penalties average $845 per year, per business, so using an outsourced company makes good financial sense.

 4. Save Valuable Staff Time

When you assign members of your staff to the task of managing the payroll, you take them away from other responsibilities that may have more value for your organization – and especially responsibilities that either save the company money or generate revenue.

 5. Outsourcing Payroll Keeps Your Process and Personnel Information Private

When you put an employee in charge of your payroll and then they leave your organization for another, they are in complete possession of all knowledge about how your company pays, what they pay, and who you are paying. When you hire an outsourced company, your information remains confidential.

 6. No More Worries About Software Compatibility or Updates

When organizations do their own payroll, they generally have to purchase specialized software, then make sure that it is constantly updated as tax rules change and software designers send out security patches or upgrades. When you leave payroll to an outsourced firm, you no longer need to worry about your technology.

 7. Eliminate Payroll Stress

To say that payroll is one of the more stressful aspects of operating a non-profit is an understatement. When you eliminate it from your to-do list you free yourself of one of your biggest headaches.

8. Cut Costs

Perhaps most important of all, research has proven that when organizations outsource payroll they actually reduce their costs. Since even non-profits with as few as ten employees typically end up spending about $2,600 on doing their own payroll, it’s easy to see how much you can save by using an outside firm. 

Providence Payroll specializes in payroll services for non-profit organizations and is knowledgeable about niche payroll items like Clergy Housing. Give us a call today at 913-712-9336 to see how outsourcing your payroll can help.

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Bret Willoughby

Bret Willoughby

Bret Willoughby is a practicing tax preparer for expats throughout the world. He created Providence Payroll to meet the needs of Churches, not-for-profit organizations and businesses with remote workers. His web-based payroll processing service benefits both employers and remote workers with an easy way to access payroll information. Clergy have unique payroll and tax-related issues, one that Providence Payroll is qualified to manage.

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