Staffing firm owners have a lot to deal with, especially those who own small businesses and do most of the work themselves. And almost everyone will tell you that, above all else, payroll administration is their least favourite task. Marketing is a breeze. Recruiting is fun. Reeling in new clients is an exciting challenge. But payroll processing is just time-consuming, stressful, and costly work that has to be done to stay in business. There’s no joy in processing payroll.
Check out these five reasons why payroll administration can be such a pain in the staffing industry.
1. It’s Time Consuming
The more complex your pay structure is at your staffing firm, the more time consuming it’s going to be to process payroll. When you have full-time, part-time, and temp employees all working for different wages and working different hours, there’s a lot to keep track of. You have to ensure that everyone is being paid correctly, which means counting and double counting hours on time sheets, keeping track of overtime, vacation days, sick days, and holidays, and deducting the right amount of taxes, CPP, and EI.
When you’re spending so much of your valuable time on the repetitive tasks needed for payroll administration every two weeks, you have very little time left over for customer service, recruiting, and other core business activities that should be your priorities.
2. It’s Costly
Time is money. And all of the time you dedicate to payroll administration will add up considerably. Consider how many hours you spend each month making deductions, tracking time sheets, signing cheques, distributing pay stubs, and double checking for errors. When you don’t have the resources for a large, efficient payroll department, then you just end up burning money by processing it in house. Plus, you have to pay for payroll software, printers, maintenance and repair, paper, ink and other supplies. If you think managing payroll on your own is more cost effective, think again.
3. The Risk of Mistake Is High
Most staffing industry owners dread payroll because they know that they don’t have the in-depth knowledge required to get it right. This means the task is always filled with fear and anxiety. Owners stress at the thought of making mistakes and then having to face government audits, fines, and penalties. And they worry about calculating pay cheques incorrectly and having their employees angry with them, resulting in a less-than-stellar image for the agency.
4. Legislature Is Always Changing
Having to keep up with ever-changing payroll legislature can be very difficult, time consuming, and stressful. No one is calling business owners to alert them of updates, changes, and new laws. You have to continuously research to ensure you’re following the most current laws, which is tedious at best.
5. Security Threats Are Real
When you handle payroll processing in house, it becomes more risky. Even with long-trusted employees handling some of the work, there’s always a potential risk of embezzlement, identity theft, and tampering with files for personal gain. And if your company server or network isn’t secure, then your payroll data isn’t safe and confidential, either. Having to closely supervise your payroll administration for time and rate abuse, payroll fraud, and other types of unethical activities can be taxing.
Get Rid of Payroll Pains
Payroll administration is a real pain for staffing firms. The task is time consuming and costly to handle in house, the risk of error and security breaches is high, and payroll legislature is always changing, which is hard to keep up with.
What if we told you that you can avoid dealing with these payroll pains? When you outsource your payroll administration to a back office service provider, you can unload the responsibility onto qualified payroll experts who will ensure your employees are paid accurately and on time. When you outsource payroll, you’ll be able to get back to your core business activities and eliminate a big stress.