3 Myths About A Payroll Service Provider In Germany

Ok, I am going to hire a Payroll Service Provider in Germany. Now what?

Rhonda Abrams, a famous USA columnist once famously put it, “If you have one employee it’s time to get a payroll service”. The benefits of outsourcing payroll in Germany are too many. Imagine yourself free of all the payroll worries. You do not have to bounce the books around to employees to tackle, or waste time or energy figuring out finances, or worry that you might forget to file a quarterly report when you could actually divert all this effort to something much more important to you that is your business.

Outsourcing such a crucial function to someone can be difficult and not everyone is so quick to delegate these duties elsewhere. With an endless list of benefits that a third party firm provides, there are number of misconceptions that may make businesses wary about outsourcing payroll in the first place.

1) Payroll Is Too Expensive

One of the foremost myths is the matter of budget. For smaller companies, maintaining everything in-house may seem more convenient and cost-effective, but payroll is not only about bookkeeping. There are a lot of other responsibilities such as printing, signing, and distributing checks, issuing W-2 forms, withholding employee taxes, paying payroll taxes etc. Even if you are fluent in these duties, you will actually admit that these are time consuming tasks. Now take a moment and calculate the amount of time you spend working on payroll. And now think about all the work you could have done in that time, right from crucial projects to expansion to hiring new employees.

2) The Numbers Will Be Full Of Mistakes, Which Could Lead To Penalties

One of the biggest nightmares of any small business owner is that the numbers they had spent months on get mangled and now there are penalties that need to be paid. This is a myth as with proper research of the background of the service provider, you can find the one firm that will be able to take care of your payroll needs just the way you want them to be. Talk to other small business owners for recommendations. The more local and accessible the provider is, the better when it comes to the finances of your business.

3) Outsourcing Is Not Secure Enough Or Safe

One of the hardest myths of all, this becomes difficult to beat particularly in the age of data breaches, but we strongly believe that it is other way around. The amount of security outsourcing offers the clients is unmatchable. In order to be doubly sure of the fact that the service provider you are going with is stringent in their data protection norms, you can ask them what their process is and what security practices they follow. Find out how the provider plans to centralize and protect your data and what all kinds of servers and backup systems are available especially for sensitive data.