Decide Whether Payroll Outsourcing Makes Sense for Your Business
As a business grows and adds more employees, keeping up with the employment payroll can become a chore. Especially in businesses where the payroll can change every pay period, the task can become a nightmare for many business owners.
Keeping track of the different taxes and deductions that must be submitted to state and federal agencies can get complicated and expensive if done incorrectly. For most businesses, it is worth the fee to hire a payroll service to ensure that everything is done right and on time.
What to expect from a quality payroll service
There are many types of payroll services, from large, nationwide chains to small, independently owned businesses. Most companies will offer several services or packages, from just payroll checks to more extensive services such as submitting your taxes for you and end of the year tax documentation.
For a payroll service that will provide you with the most benefit as an employer, look for these value-added qualities and services:
- Convenience in submitting your payroll information to the service. A payroll service should do everything they can to make their service convenient for you to use.
- Tracking of all the details of your payroll and HR data with multiple reporting capabilities. A value-added payroll service should provide detailed reporting on the following:
- Employee benefit withholding
- Paid and unpaid time off
- Accrued paid time off
- Payroll tax deposits and quarterly filings. Payroll providers should be responsible for timely tax deposits on your behalf with both state and federal governments, so that you are never faced with late deposit penalties. They should also be responsible for filling out and filing all your quarterly tax returns for you. If deposits or returns are inaccurate or late, your payroll service should pay any resulting penalties and fees.
- 24/7 access to all your payroll data. These are your company payroll records. You should have full access to all your payroll data, past and present, whenever you need it.
- Full integration with your existing systems. Manual entry of data always leaves room for error. A full-service employment payroll system will provide integration with your timekeeping system and your general accounting system.
- Keep you informed of any changes in payroll and employment related regulations. They're the experts. They will know about any changes that affect you as an employer and keep you informed and compliant.
Payroll outsourcing enables your team to focus on other tasks and spend more time working on your business instead of the day-to-day chores that will keep you spinning your wheels. If you're still on the fence about payroll outsourcing, consider the following benefits:
- Time saving: When payroll is handled by an experienced payroll provider, the process will be completed more quickly than if you try to deal with it yourself. The company's staff will already be familiar with the payroll processing software and able to input information efficiently. Direct deposit statements or checks can be generated quickly.
- Preventing penalties: Calculating the correct numbers for withholding tax and deductions for employees must be done correctly or you will be required to pay a penalty. A payroll provider will be well-versed in current regulations to prevent penalties.
- Stability: If you run a small to mid-sized business and the person responsible for your payroll entries gets sick, quits or fails to come in to work, you may be stuck trying to figure out how to manage. By outsourcing this function, you will not be left in the lurch.
- Peace of mind: Running a business is stressful enough without having to worry if the payroll has been prepared correctly or if it will be completed on time. Payroll outsourcing is a savvy move when you choose a provider that can step in and take over this necessary function.
The way payroll works has changed significantly in recent years. Whether it's taking photos of a paycheck with a smartphone to make a deposit, managing payroll from a tablet, or eliminating paper checks entirely, there are opportunities for your company to save. The problem can often to be how to implement these changes.
In most cases, corporations are amazed by the smooth shift to e-payroll and other modern services. When employees can go online to check their tax information, deposit checks without going to the bank, and get automatic updates, their personal accounting becomes much easier. Employees who are happy about their company's payment and accounting process can focus on their work duties -- clearly the goal of any executive team.Ready to Compare Payroll Services Price Quotes?