Why You Should Delegate Payroll to Someone Else

Owning a business can be both deeply rewarding and, at times, overwhelming. This is especially true if you try to do everything yourself. You might be surprised to know that you can increase your profits by hiring people to take care of your office work for you. Payroll, especially, can be time-consuming and complex. Here are three reasons why you should consider delegating payroll to someone else.

Focus on Your Strengths

As a small business owner, you are the very heart and soul of your company. Your passion, creativity, and expertise are needed on the most critical tasks, not on the mundane facets of your business. Payroll administrators keep track of employee hours, ensure proper and timely payment, manage direct deposits, and ensure that account balances are accurate. Payroll administrators also handle employee taxes and benefits, as well as write up regular reports. In other words, payroll alone is a full-time job–one that you don’t have time for. Focus your time and energy on what only you can provide for your business.

Avoid Tax Issues

Legally speaking, it is risky to handle payroll without special training. The constantly changing laws and tax codes that vary from state to state are enough to overwhelm most small business owners. Even more, you can be charged steep penalties by the IRS if you get it wrong, even accidentally. One area to watch out for is the classification of employees. Wrongly classifying your employees can lead to tax issues. No one wants to be inadvertently indicted for tax fraud or audited by the IRS simply because of an honest mistake. Instead, hire someone who knows exactly what they are doing to take care of your payroll.

Benefit from Payroll Reports

A payroll administrator will manage your accounts more efficiently and accurately. They will also keep faithful records of every transaction and ensure that you are staying on budget with labor costs. This information is vital to you as the owner of your business. You will have a better understanding of the inner workings of your company, with a quick reference point to go to when you need pertinent payroll information fast. 


When you try to do everything yourself, the basic organizational tasks of your business will completely monopolize your time. These tasks are critical, but it is not critical for you to do them. Outsource the things that you can outsource, and save your time and energy for what matters most: growing your company, inspiring your employees, solving difficult problems, and innovating. 

Check out this article on common issues with old office buildings!


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