Payroll is complex, time-consuming and highly detailed. Small business owners may choose to do payroll in-house for cost consumption. Payroll errors can easily damage a small firm.

Small and medium businesses are finding it very difficult to manage their payroll function in-house. Many firms have outsourced their payroll functions to external third-party payroll service providers, as this enabled them to focus on their core competencies

Common Payroll Errors:

• Late tax payments
• Tax form errors
• Submitting wrong payroll tax amount
• Misclassifying employees
• Incorrect employee details
• Incorrect employee time tracking
• Depositing and reporting employment taxes incorrectly
• Improper payroll record management
• Late payroll processing

Statistics:

• IRS penalizes small businesses billions of dollars for payroll errors.
• According to the IRS, 33% of employers make payroll errors costing billions of dollars annually.
• 54% of the American workforce is affected by payroll difficulties.
• 49% of workers would begin a new job after the paycheck issues.
• 66% of Americans would experience financial trouble if they were delayed by one week.
• 37% said they were forced to pay late their mortgages, credit cards, car loans, and other expenditures.
• Gig workers fared worse than salaried or hourly workers, as 20% of them were underpaid and, 20% were paid late.
• 25% the most common payroll inquiries are about employee payslips.
• Payroll stats say that companies opt for payroll outsourcing Services save up to 18% over businesses that tackle it themselves