As any club controller can tell you, running an in-house payroll is a complex and time consuming task. There is lot more to it than simply cutting paychecks. You must keep up with an ever changing regulatory environment and adhere to complex and sometimes, ambiguous rules.
Payroll and related HR functions are a sensitive area and one in which you cannot afford to make mistakes. The majority of clubs outsource payroll and when partnered with the right company, most controllers will agree that outsourcing delivers simplicity and cost effectiveness.
Check out the top ten reasons clubs should outsource payroll:
Save Time
Processing payroll involves a lot of tedious, time consuming work. Outsourcing greatly reduces the time you spend on the monotonous details of processing payroll but allows your club management staff to spend their time on more important club management functions.
Reduce Costs
Processing payroll in-house can be very expensive. Many clubs that process in-house do not realize how much they are actually spending. Add it all up and in most cases when you run the numbers, outsourcing is a significantly less costly alternative for clubs.
Reduce Liability
According to the IRS, one in three employers has been charged for a payroll tax related error. Outsourcing delegates the responsibility to file taxes and returns away from the club and onto the provider. This significantly reduces the liability and potential penalties the club is subject to.
Increase Focus
Because payroll processing is so labor intensive and tedious, it can be a huge distraction to your accounting and management staff. By outsourcing, your staff's time is freed to focus on your core business - serving your members.
Reduce Headaches
Payroll is complicated and the rules and regulations are constantly changing. In addition, clubs typically have higher than average deductions, new hire reporting, multiple pay rates, employees working in multiple departments at different rates and a host of other complexities. Streamlining this process can avoid a lot of headaches for club staff.
Improve Accuracy
It is critical to produce an accurate payroll and doing so projects a positive impression to the club's employees. Frequent payroll mistakes damage employee morale and take a lot of time to straighten out. Avoid mistakes by having payroll experts look after the details.
Leverage Expertise
Most clubs struggle to keep up with the ever changing regulations, rules and withholding rates, By outsourcing payroll, your club can leverage the expertise traditionally only available to larger companies with a full-fledged in-house HR department.
Expand Reporting
In many cases, depending on the provider, clubs can greatly expand reporting by working with a payroll outsource provider. Be careful though, many companies charge you for every custom report. Make sure you work with a provider that has a solid library of standard reports and an integrated custom reporting tool.
Improve Organization
Clubs that process payroll in-house typically have employee information spread over several different systems or files. In many cases, reports must be run from several sources and consolidated in a spreadsheet. With an outsource solution, all of your payroll information is available in one location.
Tighten Security
Most clubs keep employee files in a file folder. These files contain private information and care should be taken to protect this sensitive information. A lot of problems can be avoided by outsourcing and maintaining a single, secure electronic location for all your employee information stored electronically and backed up nightly.