Administering your company’s payroll on time and accurately is a process which employers take lightly at their cost. With the growing complexity of taxation legislation and the introduction of auto-enrolment workplace pension (and associated penalties for non-compliance), outsourcing your payroll to a team of experts offers a host of benefits.
Keeping track of benefit deductions, garnishments, new hires and terminations, paid time off as well as federal and state regulation changes can be frustrating tasks. Regardless of the number of people employed by your business, attending to payroll demands a great deal of time and attention to detail. Outsourcing your payroll is more efficient than processing payroll internally. Leaving payroll to the experts, frees up time that you can devote to other parts of your business. Whether it’s your time or your staff’s time, chances are the hours you’re spending doing payroll could be better spent closing more deals, improving customer service. As payroll service providers are specialists, they can process even the most complex payrolls at a great speed, providing a quick turnaround time on your payroll when required.
Many payroll bureau can offer small and medium sized business total payroll packages in which all your payroll requirements can be met. With outsourced solutions, these packages are often flexible to meet your specific business model so you don’t end up paying for something that includes services you don’t need or misses key features that you do need. You’re left to focus on running your business knowing you payroll obligations are dealt with correctly, efficiently and lawfully.
Big businesses can afford to maintain big payroll departments. For small businesses however, an in-house payroll service is a money burner. If you calculate the hours your employees spend on payroll-related activities, plus payroll software costs, training costs, printers, printing and distributing payslips, creating tax documents etc, you could be surprised by the result when you compare that amount to the cost a payroll service provider can offer.
Calculating federal, state and local employment taxes and filing payroll-related tax paperwork can be a headache. If it’s done incorrectly, your business may face penalties. According to the IRS, 40 percent of small businesses pay a penalty for late or incorrect filings and payments. Many national payroll services provide a tax guarantee: providers take responsibility for penalties when they do occur. In many situations, this alone justifies outsourcing payroll.
The days of manually calculating payroll are long gone. Employers today rely on technology to operate more efficiently. As a business grows, employers have more employee records to keep and also need more reporting. Employees today want options like direct deposit and self-service access to their payroll information online. Employers are using mobile devices to look at certain reports and look up information, such as how much money they need to have in the bank on payroll dates, he noted. The advance of technology has means that payroll software can prepare calculations in a fraction of the time a person could do it manually. Additionally, when you outsource your payroll, you don’t have to worry about whether you have the latest version of your payroll software and the most recent tax tables installed on your computer. Outsourcing payroll removes these headaches and keeps things running smoothly.