Business owners must manage a variety of costs at any given time. If they do not, they face potential failure. One service they provide is check writing for their employees. This of course is the process of writing and printing up the checks that employees have earned. While it may seem simple, the costs of this process can actually stack up quite quickly. To avoid paying too much, it is best to transfer the work to an outsourced provider.
The costs per check issued by a third-party provider are often much less than the costs of doing the work in-house. Cost estimates show that the typical check issued by an outsourced provider comes out at two dollars. These services and their cost are explained by Chron.com,
For companies choosing to outsource payroll, basic service costs between $.80 to $2 per employee per payment according to Entrepreneur. A base account fee is added to that amount.
Therefore, one may add a minor expense to their overall business account and suddenly have their payroll system taken care of entirely. That is the kind of luxury that most are willing to spend a little money on.
Your personal outsourced provider may offer additional services at an additional cost which could be worth it to you. Consider for example how much it would be worth to have direct deposit as part of the overall check issuing services.
Granted, direct deposit alone may add an extra four to nine dollars for each check issued. However, the employees of most companies expect this level of service and appreciate it when they receive it. Otherwise, they may consider their employer lacking in sophistication.
The Tax Burden
Taxes are a critical reason many select to go with an outsourced check issuer. This third-party has trained professionals who know how to handle payroll taxes. The vast majority of the time these companies get it absolutely right on every check. However, every company owner should be aware that the burden of responsibility for any tax errors still remain with the employer.