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4 Signs that it's Time to Outsource Payroll

As small business owners, we tend to believe that we can do everything ourselves... and that we'll save money by doing so! As nice as it sounds, we eventually have to accept that some business functions require assistance and, in the end, we know it's the best decision we can make for our company.

To no surprise, payroll happens to be one of those time-consuming business functions that business owners hold themselves responsible for until they have no choice but to either hire and train someone to do it (time-consuming and costly) or outsource to an HR provider.

Keep reading to learn a few signs that it may be time to bring in the professionals!

Ongoing Mistakes

Contrary to the general belief, not all employees can be classified the same. This means that the process of calculating each employee's earnings must be handled accordingly. Items like garnishments, tax/nontax, holidays, and benefits, are just a few items that need to be kept in mind to ensure that you're processing payroll correctly.

If you are inexperienced in this area (like most people), then you will find yourself making one mistake after another and will wind up spending more time correcting your mishaps than running your business.

Penalizations and non-compliance

The worst-case scenario is that the mistake(s) made will afford your company penalizations for being out of compliance. The majority of Labor Law violations are due to companies not paying minimum wage and/or overtime, misclassifying employees, and requiring (or allowing) employees to perform work off the clock.

Employers face back pay of thousands of dollars, payment of liquidated damages, court and attorney fees, monetary restitution, and lawsuits if found non-compliant.


Depending on the size of your company and how often your employees are paid, you probably spend between 1 and 5 (or more) hours per week processing payroll. During that time, it's likely that those hours are spent in frustration while trying your best to calculate any garnishments, PTO, child support, overtime, etc.

Once you've outsourced this function to an HR provider, this time block will be off of your shoulders entirely, allowing you more time to focus on the strategic areas of your company, and ensuring that your payroll processing is compliant.


Payroll errors can cost a company nearly $100,000 per year to fix non-compliant mistakes. The annual salary of a payroll specialist averages about $45,000 a year. That said, a small business of about 25 employees can outsource their payroll and save close to $40,000 annually with Elevated HR. Imagine what your company could do with the extra money!

Contact us by clicking the link below and schedule your complimentary consultation to discuss what Elevated HR can do for your payroll and much more!

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