subject: Outsourcing Payroll Processing Why And How [print this page] Outsourcing payroll services are more and more important for start-up businesses. Whilst you look out the whole thing from product development to advertising and marketing, payroll is one function that can be effortlessly outsourced to a payroll service company. Payroll companies assist you to organize your payroll, adhere to policies and procedures, and get employees paid on time.
Why businesses should outsource payroll processing?
To focus on your core business activities: Payroll processing eats up a total 8 to 10 hours of employee time at every pay period. By outsourcing payroll processing, saves valuable employee time which can be reserved for core business problems to improve productivity.
To save payroll software cost: Outsourcing the payroll, eradicates the need of acquiring, installing and maintaining the payroll management software, thus it reduces the IT labor needed, resulting in several immediate cost reductions. However, many payroll companies also provide software integration into your office accounting systems along with customization according to your specific needs. Moreover, payroll services frequently update their software thus giving you an additional indirect cost benefit.
Easy scalability at minimal cost: When you outsource your payroll service to professional company, you need not to worry about adding new staff to deal with the business growth. Likewise, payroll services ensure of reassigning tasks, layoffs and unemployment insurance for contracting businesses, therefore freeing the owners of these responsibilities at affordable cost.
Typical payroll services that offered by payroll companies includes, but not limited to:
Payroll submission via fax
Calculation, printing, and delivery of payroll
Detailed payroll reports
Labor distribution reports
Mandated new hire reporting
Payroll deductions such as uniforms and tools
Processing, remittance, and administration of voluntary and court-ordered withholdings
Direct deposit at no additional charge
Assistance with wage and hour compliance
Calculation and deposit of employer and employee taxes
Timely and Accurate Tax filings: W-2, W-3, 940, 941, state income tax, state unemployment
Fulfill various state- and federal-mandated electronic filing requirements
Tax updates
How to choose a professional payroll processing company?
Tip #1:
First and foremost, ask for quotes from several payroll companies before making a final decision.
Tip #2:
Ask for history of efficiency. Check whether they can provide accurate payroll service, without any error in employee pay or providing tax information the government. An infrequent mistake is acceptable, but how fast they can resolve the problem is very crucial. If the payroll service provider is overstretched, they might not have the resources to quickly remedy the situation.
Tip #3:
Check that payroll providers system and software is compatible with your own operating systems. Also, make sure that you will be able to transfer data to and from your business easily.
Tip #4:
Check for reference. Excellent customer service to business owners and employees is important.
Tip #5:
Check that how many clients the payroll provider is serving. Large number of clients may point out a successful service but attrition in the past few months may designate deteriorating quality. Make sure that provider have ample resource to serve your business needs.
Tip #6:
Make sure that the price offered by provider is competitive. Some companies may come out with low introductory fees and charge heavily for extras. Ask for all-inclusive payroll package to compare prices.
Hiring a payroll service firm or provider is an important decision for your business. Its hard to switch to a payroll service provider if you make a wrong decision. Make sure you adequately research all options and possibilities before making a final decision.
by: Human Resource
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