BLOG: Should I Outsource Payroll for My Private Practice?

Should I Outsource Payroll for My Private Practice?

As your practice grows, you may find yourself asking: Should I outsource payroll for my private practice? Or should I save the money and process payroll on my own?

I recently wrote a blog on “The Art of Delegating in Your Private Practice”. In this post, I stated that “Sometimes others really CAN do it better than you.” Payroll processing is an area that it pays to delegate to the experts.

Why you ask, “Should I outsource payroll for my private practice?”.

There are 4 key reasons to outsource this function to a professional payroll company:

1. Payroll processing is not as easy as you think. And it is easy to make mistakes! Processing payroll requires attention to detail, accuracy and time. Would you be better leaving this important task to the experts and spending this time on your core business development activities?
2. Payroll processing requires knowledge of federal and state timelines and regulations. Do you know what specific taxes need to be deducted from an employee's pay? Do you know what tax reporting forms need to be submitted to what agency and when? Do you know the rules for maintaining payroll-related forms? My mind is swirling just typing this! This might be one area of your practice to leave to the experts. You certainly don’t want to be on a well-deserved vacation and realize a tax payment or form is due.
3. Payroll errors are costly. Did you know the IRS penalizes 1 in 3 businesses for payroll errors? One of the biggest mistakes made is failing to deposit payroll withholding taxes on a timely basis. Stiff penalties and interest (from 2% to 15% depending on how late) can easily zap your bottom line. For other payroll, mistakes read this Accounting Today article:  http://www.accountingtoday.com/gallery/Top-10-Payroll-Mistakes-Companies-Make-62641-1.html
4. The very best reason for outsourcing payroll services for your private practice is so that you can sleep at night–knowing you are responsibly handling your payroll processing by allowing the experts, a reliable payroll company, to handle this task for your business.

Be proactive. Set timely and accurate payroll systems in place by outsourcing payroll processing for your private practice. Make the smart choice–delegate this task to the experts. It’s a win-win for you and your practice!

Coming soon! Future blog topics:

• How to Choose a Payroll Service
• How to Choose a Practice Management System
• HELP! 1099 vs. W-2 Employees

 

 

Renee Matlock, the owner of The Private Practice Coach, shares with clients her wealth of experience, gained over 30 years of building a profitable, multi-disciplinary private practice.