There’s no doubt that payroll is one of the most important functions within your storage company as it supports your employees. As an owner or manager within the self storage industry, you might try to handle payroll functions on your own. However, as business expands, you may not have the time and resources to dedicate towards this crucial component. Many storage owners in this situation have looked to outsourcing as a solution to their growing needs. The following are four reasons to consider outsourcing payroll for the future:
1. Meet growing payroll needs
Initially, payroll was likely a simple task. With only one or two employees, running payroll wasn’t likely to take up much of your day-to-day responsibilities. However, payroll needs expand when your company does. Eventually, what was once an easy task may become increasingly complicated. Classifying employees, handling filing deadlines, paying overtime and dealing with state unemployment taxes are just the tip of the iceberg. When a company reaches this point, there are generally two solutions: hire a payroll department or outsource the department and its task.
2. Save time
As a business owner, it’s very important to delegate your working hours efficiently. Bringing in new business and solidifying relationships with clients and customers should be top priorities. Payroll is important, but it doesn’t promote business growth in a meaningful way.
Inc. Magazine noted that delegating tasks is important to running a business and a failure to do so could spell trouble for your company. By outsourcing your payroll needs, you’ll have more time to spend on "core tasks". Clichés are well-known for a reason – time is money, and spending too much of your personal time on payroll might be a waste of resources.
3. Increase security
Even small businesses with fewer than 50 full-time employees handle a lot of personal data. Information such as Social Security numbers and home addresses are readily available to those in the payroll department. This exposes your business to increased risk, especially in terms of potential identity theft. Files can be lost or sent to the wrong location and someone with malicious intent could easily capitalize on these errors. Inc. Magazine also reported that network flaws and/or on-site server malfunctions could spell disaster for your internal payroll. Outsourcing payroll is the best way to secure your employees’ information, especially if the service provider offers cloud-based storage with top-of-the-line security protocols and backups. Peace of mind can be hard to get in the world of business, but this is one realm that you can actually control.
4. Avoid tax penalties
The U.S. tax code isn’t a simple document. If you’re not an expert on the subject, you could be liable for fees and penalties for late or incorrect filings. You can avoid the risk of multiple errors by outsourcing your payroll to professionals who know the tax code forward and backward. This is especially helpful for storage businesses that payroll in multiple states.
Small Business Trends reported that 40% of small businesses pay about $485 a year in fines for incorrect or late tax filings. If the mistakes are more severe, that number increases greatly. Outsourcing payroll not only means that you have a team of experts working to avoid these mistakes, but that they could save your company money. The source also noted that many businesses overpay their employees by as much as 4% because of inaccuracies in time records.
What’s the bottom line? When you outsource payroll, you can rest assured advanced security protocols, top-of-the-line time technologies, expert knowledge of the tax code and more time to expand your business. When you choose AlphaStaff to handle your payroll, you gain access-anywhere attendance systems, integrated payroll processing, secure record keeping, professional tax administration, garnishments and more. AphaStaff's Self Storage Division has collaborated with several storage owners in finding unique solutions to payroll concerns. AlphaStaff knows that when it comes to owning or managing a business, it’s all about optimizing your company so that it can continue to grow and be successful.
About the Author
Jeniece Carter-Henson, Vice President of Strategic Business Development, joined AlphaStaff, a national HR outsourcing company, in August 2011. In this role, Ms. Carter-Henson leads the continuing expansion of AlphaStaff's Self Storage Division, a division dedicated specifically to entrepreneurs within the self storage industry. Jeniece has assisted a great deal of storage owners in minimizing legal risk and optimizing their business through AlphaStaff’s HR outsourcing services. She holds more than 20 years of experience within the HR outsourcing/PEO industry and an excess of 15 years of executive sales leadership experience. NOTE: The information contained in this article is not legal advice or a substitute for legal counsel.