According to the IRS, roughly 33% of employers make payroll errors that end up costing them billions of dollars in penalties yearly. And with a tax law that’s constantly changing, it can be very easy for an agency owner with little to no payroll experience to make errors.
Managing payroll is a very time-consuming responsibility, and can be very stressful on top of growing and maintaining a client base. There’s the data and record keeping, remittances and calculations, report filing and returns, time-sensitive tax payments… it really is a lot to stay on top of. That’s where The Agency Support Partners comes in.
Let’s talk about three main reasons why successful recruitment firms outsource payroll to the pros:
1. It protects them from dangerous, costly mistakes that can land their business in hot water.
For staffing agency owners who are inexperienced with payroll responsibilities, risks are high. There are important tax deadlines that must be made. For example, according to Gusto, “over 40% of small businesses get fined an average of $850 each year for payroll-tax related issues–the most common [reasons being] missed or late payments”. There are also a number of other blunders like miscalculations re: overtime pay, record-keeping errors and even the misclassification of workers that can occur. You just don’t want to take these kinds of risks – and leaving it to the professionals will ensure you avoid that.
2. It saves them money.
A staggering 45% of service companies like staffing firms fail by year four (Statistic Brain) - with insufficient capital to blame. So with that said, acquiring and saving as much money as possible is always critical… and, by leaving your payroll duties to us, you’ll be able to avoid spending valuable funds on training and employing a payroll clerk (benefits, vacation, etc. included). You’ll also be able to avoid the unnecessary costs of payroll software, printers, ink, cheques and other office supplies. Oh, and of course – costly payroll errors mentioned above can also take a huge toll on your business. Luckily, outsourcing payroll to The Agency Support Partners eliminates these financial risks and burdens.
3. It gives them more time to focus on what truly matters: creating a successful staffing agency.
On top of running your business, your payroll tasks and record-keeping can seem endless- taking up too much of your valuable time. As the owner of a growing staffing firm in Canada, your primary focus should be on what you do best: recruitment, and growing your client base!
Our payroll Professionals become your payroll department.
At The Agency Support Partners, we use a dedicated Payroll Account Manager that includes full benefits, T4s, and all government costs and mark-ups. Our system was designed with flexible staff in mind, so changing shifts and irregular employees do not cause excessive administrative work. Reports are produced in Microsoft Excel, so they can be sorted, totalled and shared in a variety of ways. The swipe clock is extremely reliable, and requires only a power source and phone line, so it can be installed anywhere in a building.
You can depend on The Agency Support Partners for all of your payroll and back office needs, guaranteed. We want to make your life easier… that’s really what it’s all about!
If you’re ready to leave your payroll management up to The Agency Support Partners, start by booking a free consultation today.
We look forward to hearing from you!