Payroll processing is a fact of life for almost every business. If you have even one employee, you’re likely going to engage in some sort of payroll activity for your business. The more employees you have, the more time payroll will take. You’ll also need to pay attention to the numerous different rules and regulations around payroll.
It’s little wonder many businesses consider outsourcing their payroll. Keeping it in house can be time-consuming and, in the end, it can also end up being costlier for your business. Even sending payroll out of house isn’t a surefire way to keep your processing costs low. If you want to save money on payroll, consider taking some of these steps.
Partner with an Outside Vendor
As mentioned, sending your payroll out of house is one of the best ways to save money on processing. Keeping your payroll operations in house may seem like a good idea, but it could be costing you more than you think.
While you may not receive a bill for payroll services when it’s done in house, having your HR staff process payroll themselves uses up their time. Payroll can become quite convoluted and complex, which could mean it takes the team longer to finish than you anticipate. As soon as one cycle is finished, the next begins.
By teaming up with a payroll provider, you’re freeing up your HR staff’s time. They can get back to the things they truly need to pay attention to, and you can get accurate and on-time payroll processing.
Reduce the Number of Errors
How else can you save money on payroll processing for your business? Reducing the number of errors in your payroll is a big one.
Even your most talented HR staff may make mistakes in payroll, especially if they’re rushing. If your team is overwhelmed, they may input data incorrectly or apply the wrong rules. The same is true if your HR staff happens to be inexperienced or the payroll is particularly complex.
Even some outside vendors may make mistakes when it comes to processing payroll for your business. Large providers are particularly known for this. Smaller providers who employ experts in payroll processing not only deliver better customer service, but they can often help you reduce the number of errors.
Errors could be costing you a good deal of money. They can result in penalties and back payments to the IRS or your employees. They may also take time and effort to resolve, which can also run up the bill.
Get the Right Technology
Another way to reduce the number of errors and save money on your payroll processing is to ensure you’re using the right technology. If your HR staff is still manually inputting timesheet data or using spreadsheets to perform their calculations, you may find you have more errors.
The right technology can help you save time and money by simplifying and streamlining the payroll process. What if your payroll processing program could simply pull timesheet data from a timekeeping program? It is possible. The right technology allows you to do this.
Better technology will help you streamline your operations. If you work with a payroll provider, you may use their program to streamline payroll operations. If you’re handling payroll in house still, then adopting a new program could help you as well.
Talk to Someone Today
If you’re concerned about the costs of payroll processing in your business and you want to learn more about what you can do to save money, talk to a payroll processor to discuss your options. There may be more you can do to streamline your payroll and save even more.