Advantages to Outsourcing Work – Keep the Mounting Payroll Expenses Down
The goal of every business owner is to be profitable. The more expenses your business has, the less profitable your business will be. Deciphering what expenses are necessary or wasteful is important when observing the condition of your bottom line. One of the biggest expenses for any business is payroll and all the costs surrounding the need for staff. The employee’s hourly or annual wage is just one factor to consider. Here are some things to consider when factoring the cost of having employees:
- Wages – The employee will want to be fairly compensated for the time they are on the clock performing the duties in which they have been hired.
- Benefits – Not all companies offer benefits mainly because of the expense and the need to have a benefits administrator to coordinate the plan. Benefits, for example, could be: health, vision, dental, Life, FSA accounts, or tuition reimbursement, retirement accounts, gym club memberships. If you should decide to offer benefits to your employees, then you will need to consider benefits are expensive and therefore you need to determine what percentage of benefits are you willing to cover.
- Taxes – As an employer, you will be required to withhold and pay taxes for that employee in that period.
- Insurance – Workman’s Compensation and Unemployment Insurance
- Office Space – Having employees may require you to have an office for them to report to every day.
- Office furniture and equipment – At minimum, you will need to furnish the office with all the necessary items for the office to function and the employee to satisfactorily perform their duties in order to meet your business needs.
Even though you want the business expenses to be as lean as possible; the work still needs to be done. Bills need to be paid, customers need to be invoiced, etc. Creating a working relationship with a business support company is a way to have the best of both worlds: Making sure the work gets done to your customer satisfaction as well as keeping overhead low. Call FR8 Solutions today to schedule a free consultation to discuss how our business can help with the success of yours! Call 970-373-3483.