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Session 4 – Business Organization

Question:
“What are the benefits to outsourcing payroll?

Ken Blake
Certified Public Accountant (C.P.A.)

Topics covered in this video:
Small business accounting, payroll, outsourcing

Transcript:
Well, there are a number of benefits for outsourcing. There are probably three of them that are the best to keep in mind. The first one is there is a privacy factor in the sense that the payroll isn’t available for the employees to see the various salary levels.

The other thing is that it helps on your cash flow because most payroll services will pay the payroll and the payroll taxes as part of the payroll, so you don’t have a bump in your payroll requirements when the payroll taxes are due. So it has a tendency to level out your cash flow.

The third element has to do with reduction in time. It’s a little easier to deal with an outsource company because all you have to do is call in the payroll vs. when you do it yourself. Someone has to sit down and calculate the payroll or at least feed the data into a program and thereby taking up the employee’s time which could be better spent doing other things.

Duration : 0:1:21

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