Why Accountants Recommend Outsourcing Payroll
More and more accountants today are seeking payroll outsourcing options for their clients, relieving the burden of complex payroll tasks and saving time and money in the process.
I talk to accountants on a regular basis and one of the primary reasons they are recommending an outsourced provider to clients is to ensure payroll tax compliance. In 2011, there were over 4,000 regulation changes nationwide affecting federal, state and local payroll taxes. This astronomical number is simply too much for the average small business owner to keep up with. Quite frankly, most accountants I know don’t want to keep up with the compliance required for all these changes either.
Lisa McMahon, member, Warren, Averett, Kimbrough and Marino, a
Birmingham, Alabama, accounting firm, has referred the firm’s clients to
CompuPay for the past eight years. “The main reason we encourage our
clients to outsource their payroll is that it saves them time and
money,” McMahon told me. “Keeping up and complying with all the federal,
state and local rules and regulations require a lot of time and effort.
Many clients have limited resources to use for processing their payroll
and filing all the necessary returns timely. By outsourcing their
payroll, our clients can get out of the payroll business and have more
time to spend on revenue generating activities for their business.”
Partnering with the right payroll company is all about service
To make it work for both the firm and the client, finding the right
payroll company to partner with is essential. For firms looking for an
outsourced payroll provider, McMahon offers this advice: “It is really
not so much about the payroll products offered, it is really all about
the service. There are many products available on the market to meet our
clients’ needs; the real differentiator is the quality and level of
According to McMahon, some of the fundamental factors in a successful
partnership between an accounting firm and an outsourced payroll
company are communication, responsiveness and accuracy, “however, the
key to the relationship is how well the payroll provider helps us serve
About the author: Kathey Palmer joined CompuPay
in 2005. In her current position as senior vice president, business
development, Ms. Palmer oversees marketing, communications, public
relations, channel partner relationships and sales support and is the
senior manager responsible for mid market and national accounts sales.
She holds master’s degree in public administration from the University
of Alabama and a bachelor’s degree in political science and economics
from Mississippi University for Women.
The material contained in this document is
for informational purposes only and is current as of the date of
publication. CompuPay is not a tax, legal or financial advisor and makes
no claims as such. For tax, financial or legal advice, please consult a