Reasons for Outsourcing Payroll Responsibilities to Another Agency

When I had two employees at my company startup, it was easy to do payroll. It was just me and my wife on the accounts. It was no big deal if I skipped a pay or had to double up to cover an expense outside of our business. You have to be precise and on time for other employees. This is why I hired a company that does payroll in Bristol after we hired more employees. I had accidentally aggravated a good employee we had hired because we had no clear responsibilities between my wife and I as to how payroll would be handled. One week, when it got really busy, I forgot to write our worker a paycheck. That did not go over well at all.

After apologies and an impromptu bonus for her troubles caused by me, we got a company to take over our payroll in Bristol. We had, at the time, five other employees. I had written all of their paychecks from their time cards and forgot hers. She was on salary with us at a steady rate per week. When her biweekly check day came and went without pay, she was upset to say the least. I did not ever want to lose the trust of an employee like that again. The main reasons being that they are good people and they are the ones that keep our business running.

It is so easy to make mistakes in payroll. Anyone who owns any size business knows this is true. You can goof up and overpay or underpay an employee. Also, you can end up overpaying for a long time with some employees not noting it to your attention. I have heard the stories. And how would you collect that money back from someone unscrupulous? This is why I think it best to give payroll responsibility to an outsourced agency. Oh, and automate the process as much as possible. Use computer timekeeping and work reporting. Then just audit the hours to make sure things are accurate before you sign off on the paychecks.

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