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WHY IT PAYS TO OUTSOURCE
YOUR RECRUITMENT AND PAYROLL?
There's more to managing small business recruitment and payroll than
interviewing potential employees,
connecting them with work
opportunities, and managing their paychecks. You need to keep accurate records,
maintain and
calculate payroll taxes, and communicate effectively with
employees. Many small business owners today are finding that they can
simplify the process by using an outsourced temporary employment
service like Twin City Labor Temps
to manage employees in a way
that is both
cost-effective and efficient.
Outsourcing your recruitment and payroll can provide your small
business with a number of important benefits:
1- SAVE TIME:
Using an outsourced staffing solution is typically more efficient for
a small business than processing all functions internally. Leaving payroll
to the experts frees up hours that you can devote to other important
parts of your business. Whether it is your time,
your staff’s time, or a
combination, chances are that the hours spent
will be better used
winning
more business, improving customer service, fine-tuning business
operations or launching a new product line.
Outsourcing will save you time and energy on:
- Writing job descriptions
- Advertising job openings
- Conducting interviews
- Skill testing the applicants
- Drug testing the applicants
- Background and credit checks
- Writing employment contracts
- Filling Form I9 and Form W4
- Setting up and maintaining personnel files
- Setting up a
payroll system to withhold taxes
- Getting
worker's compensation insurance for the new employees
- Reporting the
new employees to the Minnesota
New Hire Reporting Center
- Processing payroll
- Cutting and distributing paychecks
- Calculating and paying on time
withholding and employment taxes
- Preparing and distributing W-2s and 1099s at year-end
- Filling the IRS Form 940 every year
2- SAVE MONEY:
Many business owners underestimate the cost of processing staffing
tasks
internally by failing to account for all hours spent and resources
allocated to manage
employees. A
thorough cost assessment usually proves that a small business saves
money by outsourcing the processing, tracking and filing of payroll
documents. To assess your own internal payroll costs, consider:
-
Cost of time spent: consider the cost of your
time and the time of anyone who processes or "touches"
employment tasks.
Often, since many people in a small company are involved in the various
parts of employment and payroll processing,
this cost can be significant.
-
Savings from Outsourcing: since an outside provider
can handle all the responsibilities involved in recruiting new
employees and managing their payroll, a small business can often eliminate
or reallocate an internal HR department.
3- AVOID PENALTIES AND POSSIBLE LAWSUITS:
- A small business owner can
remain free from troubling penalties or lawsuits by allowing Twin
City Labor Temps to follow the proper procedures for during the
interviewing, selecting, recruiting, and documenting of new
employees. Your company will directly benefit by:
- Avoiding unlawful questions during the interview process
-
Avoiding discrimination issues
-
Avoiding wrongful termination cases
-
Providing strict compliance on all
federal, state, and local employment taxes and filing
payroll-related tax paperwork on time.
If an error occurs,
your small business may face penalties and interest on money owed
since the mistake was made, and may also face lawsuits from
employees.
In fact, it
is estimated that:
- Each
year,
one in three small businesses receive penalties each year
from the governmental administrations and bureaus.
- Each
year, one
in two businesses will have to
go to court to defend a case in a lawsuit by one of its employees.
Outsourcing
the recruitment, the employment and the payroll does away with the
risk of accidental missteps.
Our
goal is to take the pressure off your business through full service
staffing solutions. We lift the burden of recruitment, employment
issues and project management so that you
can focus on the core of your business.
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