By Raymond Erb
- Lower Cost - No more software updates, training for payroll staff on new laws, running out of checks. No more tax penalties... Instead those resources can be used to invest directly in your profitable operations.
- Increase efficiency - As you streamline your business processes it takes less people and less overhead to run your business. This increases efficiency and increases profits.
- Burdensome Labor Laws - Puerto Rico’s labor laws are very burdensome. To manage the myriad of rules regarding overtime, time-off accruals, and other labor regulations, companies should outsource payroll to help manage these burdens.
- Disaster Recovery - Payroll companies have disaster recovery systems specifically designed for the payroll industry. And should your business experience electrical, computer, or internet failure, the payroll and payroll tax payments will still be completed in time.
- Risk Management - By outsourcing, you put the responsibility for compliance on the provider, where it should be. You also minimize the impact of error since the payroll provider will have multiple levels of internal and external auditing. If an error is made, it will be caught and handled on a timely basis, instead of accumulating burdensome tax penalties.
- Greater Knowledge Base - Instead of having one or two payroll staff with limited experience, your business will have access to many payroll staff each with their own area of expertise.
- Employee Moral - Your payroll company can offer more services and for less. Services like online statements for employees and new software features for HR or Time and Attendance, making the experience better for employees.
- Hacienda - Hacienda has been getting more aggressive. Recently they began sharing more information bi-laterally with the IRS. Companies need to insure they are following all laws for both Puerto Rico and at the federal level.
- Corporate Pride - When a company takes steps to improve efficiency, lower costs, and reduce risks, the entire company benefits not only directly but also indirectly as pride in the business helps the company move to the next level.
All companies could benefit from outsourcing their payroll needs.
