Reduced payroll tax penalties are only one of the benefits for companies that outsource payroll processes or payroll tax filing, according to the 2006 Empagio Executive Study on Payroll and Tax Filing, a national survey of financial and human resources executives.
Among respondents whose companies outsource, nearly three-quarters (72 percent) report outsourcing has reduced the dollar value, while 69 percent reported that outsourcing has reduced the number of payroll tax penalties.
More than half (56 percent) of executives indicated that their companies outsource at least one payroll or payroll tax filing service. While 72 percent of executives whose companies outsource report outsourcing has reduced the dollar amount of tax penalties, another 27 percent said that the dollar amount remains unchanged.
More than 200 executives participated in this study, which was conducted online in September 2006. Atlanta-based Empagio provides human resources outsourcing.
According to the majority of executives whose companies outsource, the main reasons for outsourcing are efficiency (68 percent), saving time (47 percent), and saving money (31 percent).
Of the 74 percent of executives who said that they had some concerns over outsourcing, 43 percent say lack of responsiveness is their top concern, followed by:
- Lack of customer service (35 percent);
- Non-compliant reporting (18 percent);
- Poor quality or ineffective technology/product (18 percent); and,
- Concern that returns will not be completed on time (18 percent).
The free report may be downloaded at www.empagio.com/survey.
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