Running a business is complicated. Even the best business plans can be foiled by complex payroll rules. When you pay employees and contractors, there are many factors you need to consider, such as state laws, taxes, social security and other deductions.
Still, many business owners keep their payroll in-house instead of using outside companies to handle it for them because it saves money over time. Many companies are using check stub makers that do all of the complex calculations for them. Pay stub generators can save you from these hidden costs of payroll.
Time Spent. It takes time to make sure your employees and contractors are paid correctly and on schedule. Approximately 28 percent of businesses spent over six hours each month on payroll alone, according to SCORE.Whether you have an employee that does your payroll or you do your payroll yourself, those are hours that could be better spent elsewhere. Having an easy way to generate check stubs saves many hours and headaches over a year. A check stub generator also saves time it takes to correct errors on paystubs because they easily calculate everything you need with no hassle.
Resources. In addition to the hours it takes to administer payroll, it also takes up other resources. According to SCORE, 31 percent of businesses spend over $500 each month on payroll costs, with five percent spending over $5,000. For small businesses, this amount of money can make or break a company. Where does all this money go? Much of it is spent on expensive software that generates check stubs. However, for many businesses, this can be handled by online generators. Some of the money goes to printing costs and maintenance. Online generators often have a digital option, which eliminates the need to print and keeps a safe, electronic record for your bookkeeping.
Legal Costs. When payroll is done in-house, there is another big cost that can come up–legal fees. Payroll can be complicated, but there are significant risks to doing it incorrectly. If you don’t calculate taxes correctly, for example, you may need to hire a lawyer to deal with the IRS. Payroll disputes can also lead to costly legal battles. Making sure your check stubs are correct allows you to have a paper trail that will keep you out of trouble and save you money later on.
Hiring Costs. Finally, when payroll is done poorly, you can also lose employees and contractors. People want and deserve to be paid on time and correctly. If you make mistakes on your check stubs, you make lose personnel, costing you money to rehire and train new workers. It is better to make sure your check stubs are correct the first time.
You shouldn’t have to spend so much money and time making sure your employees are paid. There are betters ways to manage your pay stubs that are easy to use and even customizable. You should be spending that time growing your business instead of agonizing over spreadsheets and bookkeeping software.