Payroll management is a topic of concern for HR managers, payroll managers, and business owners alike. After all, managing payroll well has its benefits for your business. Good management will ensure your employees are paid on time and correctly. Taxes will be withheld correctly. You’ll be able to avoid penalties from the IRS. The list goes on.
Payroll is also a task that must be administered in almost every business. If you have even one employee, you’ll need to engage in some form of payroll. Larger businesses spend even more time and effort on managing payroll.
As your payroll becomes more complex and encompasses more employees, you may find yourself contemplating the fees associated with payroll management. Are there ways to lower the costs?
The Simple Answer
The quick and easy answer to the question of whether or not the costs of payroll management can be lowered is “yes.” There are absolutely ways to go about lowering the costs associated with managing payroll. Some methods, of course, are better than others.
As you think about lowering the costs associated with this important business task, keep in mind the importance of value. While you may be able to whittle costs down to an absolute minimum, there may be hidden costs associated with things like poor customer service or bundled services.
How should you go about lowering the costs associated with managing your payroll activities?
Get Expert Knowledge
One easy way to lower the costs associated with payroll management is to employ the experts. Your payroll team is likely staffed by many talented people, but they may not have the experience or the expertise to handle the most convoluted of payroll topics.
The result will be a number of avoidable mistakes in your payroll, all of which can cost you more than you need to pay. An error in withholding could mean you need to pay penalties to the IRS. A mistake on another form could trigger an audit, with all of its associated costs. Poor advice may mean you withhold at the wrong rate or claim credits you’re not eligible for. All of these issues can cost you more in the end.
Expert advice and assistance can help you avoid these pitfalls.
Use the Right Technology
Another easy way to reduce the costs associated with payroll management is to invest in the right technology. While this may look like it costs more upfront, technology’s cost-saving features will lower your payroll bill over time.
One way this happens is through the automation of certain tasks, such as data entry. Some of the best payroll technology on the market today can draw in data from other programs, such as an employee self-service timekeeping program. This, in turn, reduces the errors that come with needing to enter and re-enter data manually.
The right payroll technology can also help you track compliance and changes to the tax regime, as well as issue reminders about sending out forms or requesting them back.
Partner with a Payroll Provider
If you’re using the right technology and you’ve already been getting great advice, it might be time to take the next step. Consider partnering with a payroll provider to lower the costs of your payroll management even more.
This option combines both technology and the expertise of payroll professionals. It also frees up your own team members’ time and energy, allowing them to get back to the tasks that are truly important for your business.
If you already work with a payroll provider to get advice or assistance, ask them about their options for more complete management solutions. If you’re unsure if this is the right option for you, talk to some payroll providers today and discover more about how they can help you lower the costs of payroll management.