Payroll is a necessity in business. However, it can also be time consuming and complicated, which is why many companies use payroll processing services.
Not sure if you could benefit from outsourcing? Here are the key benefits to partnering with a payroll company.
1. Saves Time
Time is money.
If you calculate the time it takes to process payroll every week or two, you’ll be surprised how much the labor costs. You have to calculate hours worked, deductions, vacation time, sick time, and holiday pay. There’s commission to consider, as well as bonuses and other taxable benefits. You then have to print, sign, and distribute checks. Then there are reports to create and taxes to file.
If your HR managers are bogged down in inefficient processes and time-consuming tasks, it takes away from their ability to be a strategic partner. For this reason, many companies outsource their payroll using payroll processing services.
2. Saves Money
You might consider outsourcing to be an extra cost you don’t want or need, but, in fact, it can save you money on overhead.
You won’t need to pay in-house employees to manage payroll, including their benefits, vacation, time, and other benefits and perks. You won’t have to pay for software or supplies, either. And payroll mistakes will be eliminated, so you won’t have to worry about paying costly IRS fines and penalties.
3. Eliminates Errors
As mentioned, when you outsource your payroll, you eliminate errors that would normally occur if you were processing payroll in house. This is because you’ve handed over your payroll to professionals who know exactly what they’re doing.
You won’t have to worry about a tarnished reputation among your workforce for incorrect paychecks and you won’t have to worry about a bad rap with the IRS due to errors.
4. Ensures Compliance
Taxes are complicated. It’s easy to make errors and miss key legislative updates. Making tax mistakes, however, can lead to serious problems with the IRS. This is why using payroll services is such a good idea. A payroll processing services company can ensure you’re always compliant with the tax code.
5. Access to Technology
On your own, accessing the latest technology can be difficult. These software programs can be too costly to keep up with. Outsourcing your payroll ensures you have access to the best technology to process payroll quickly, efficiently, and correctly.
6. Added Security
Payroll needs to be kept secure to protect sensitive employee information. Should your offices ever get broken into or your systems get hacked, identity theft could be a real problem. Payroll fraud is another concern.
You have to be prepared for these risks if you process payroll in house. The cost of keeping that data secure can get expensive. However, when you engage payroll processing services, those security measures will be put in place by your provider.
7. Other Service Offerings
Many payroll processing services offer their clients other service offerings on top of managing and processing their payroll. Some of these services can include benefits management, time and attendance management, and HR management. These offerings could improve your business.
Payroll processing services can be beneficial to your business. Partnering with a provider can save you time and money. It can also provide you with added security, help you eliminate common errors, and help ensure you’re compliant.