Timely payment of wages is necessary for employee satisfaction and to keep them motivated. The slightest slip in this regard can be very costly. However, managing payroll is a difficult task for even the most competent employee. Staff changes, deadlines, and changing tax regulations only make things worse and lead to unnecessary delays and inefficiencies. A payroll service can take care of all your payroll requirements and free you and your employers from unnecessary stress and hassle.
Outsourced payroll services become even more important for start-ups. While you handle everything from product development to advertising, marketing, and sales, payroll is one function that can easily be outsourced to a payroll service.
More than a quarter of companies already enjoy the benefits of outsourcing payroll. These are the main benefits you can expect from outsourcing.
free payroll software
Outsourcing payroll eliminates the need to purchase, install, support and maintain payroll software and reduces the IT manpower required, resulting in several immediate cost reductions. Several payroll companies also provide software integration into your office accounting systems along with customization. Plus, payroll services regularly update their software, giving you another indirect cost benefit.
Easy scalability at minimal cost
When you outsource to a professional service, you don’t have to worry about adding new staff to keep up with business growth. In the same way, they are in charge of reassignments of tasks, dismissals and unemployment insurance for the hiring of companies, thus freeing the owners of this responsibility at affordable prices.
Focus on your core business
Payroll occupies a total of eight to ten hours of the employee’s time, each pay period. Outsourcing payroll saves employees valuable time that can be spent on core business issues to improve productivity.
Employees prepare and submit their own payroll data
Payroll services use software as a service, which delegates the responsibility of collecting and submitting work hours themselves to employees. To do this, each employee uses their login to enter information about work hours into electronic timecards on the suppliers’ website. Once completed, these are electronically reviewed by the manager, who can approve or return any inaccurate timecards. Defaults for submission, approval, and correction ensure employees are paid even when the manager is not available to review timecards. Most services also accept variable payments such as bonuses, commissions, and penalties.
Convenience of paper paychecks or direct deposit
You can have paper checks sent to your office or provide direct deposit to employees. In either case, the payroll company is responsible for withholdings and legal contributions to health and retirement plans.
Responsibility for regulatory compliance moved to the payroll service
The biggest headache when processing payroll is keeping up with changing tax regulations that create unnecessary fines and penalties for your business. Payroll services can better handle mandatory tax regulations and ensure compliance. Plus, the payroll services themselves pay the penalties, if any, saving you money and worry.
Outsourcing payroll can be one of the most profitable decisions you make. Go ahead and hire a payroll service to reap the benefits of increased production and business profits.