Timely payment of wages is necessary to keep employees happy and motivated. The slightest mistake in this regard can prove very expensive. However, managing payroll is a difficult task for even the most experienced employee. Staff turnover, deadlines and changing tax regulations only exacerbate the situation, creating unnecessary delays and inefficiencies. A payroll service can take care of all your payroll needs and relieve you and your employers of unnecessary stress and hassle.
Outsourced payroll services are becoming even more important for start-up companies. While you take care of everything from product development to advertising and marketing to sales, payroll is a function that can easily be outsourced to a payroll service.
Over a quarter of companies are already reaping the benefits of payroll outsourcing. Here are the top benefits you can expect from outsourcing.
Free payroll software
Payroll outsourcing eliminates the need to purchase, install, support and maintain payroll software and reduces the required IT workload, resulting in several immediate cost reductions. Several payroll companies offer software integration with your office accounting systems in addition to customization. Additionally, payroll services regularly update their software, giving you another indirect cost benefit.
Easy scalability at minimal cost
When you outsource to a professional service provider, you don’t have to worry about hiring new staff to handle business growth. They also take care of job shifts, terminations and unemployment insurance for contractors, relieving the owners of this responsibility at affordable prices.
Concentrate on your core business
Payroll takes a total of eight to ten hours of work time in each payroll period. Payroll outsourcing saves valuable employee time that they can devote to core businesses to increase productivity.
Employees create and transmit their own wage data
Payroll services use software as a service that delegates the responsibility of recording and reporting hours worked to employees. To this end, every employee logs in information about working hours in electronic time cards on the provider’s website. Once completed, these are electronically checked by the manager, who can either approve or return an incorrect time card. Submission, approval and correction policies ensure employees are paid even when the supervisor is unavailable to review time cards. Variable compensation such as bonuses, commissions and fines are also taken into account by most services.
Convenience of paper paychecks or direct deposit
You can require paper checks to be delivered to your office, or arrange for them to be deposited directly with staff. In both cases, payroll accounting takes care of statutory deductions and contributions to health and pension schemes.
Responsibility for regulatory compliance has been shifted to payroll
The biggest problem with processing payroll is keeping up with changing tax regulations that result in unnecessary fines and penalties for your business. Payroll Services can better manage mandatory tax regulations and ensure compliance. In addition, the payroll services will pay any penalties themselves, saving you money and worry.
Payroll outsourcing can be one of the most profitable decisions you make. Hire a payroll service to reap the benefits of increased business performance and profits.