Payroll is perhaps one of the most time-consuming of all human resources activities. It needs to be done on an ongoing basis. You may end one payroll processing period and need to immediately jump into the next one. It’s almost never as simple as it first seems.
It’s one of the reasons payroll is one of the top business processes to be outsourced. Why struggle with all the intricacies and ongoing deadlines when you can get expert help from professionals who administer payroll on a regular basis?
If you’ve been pondering how to make your payroll activities more effective and efficient, you should consider outsourcing them. Here are five payroll outsourcing services you’re guaranteed to love.
1. Payroll Tax Management
Perhaps the most complicated part of payroll is actually the taxes associated with it. For businesses in the US, the IRS sets remittance schedules, rates, and more. It’ll also collect fines and penalties if you pay late or the amount you send is incorrect.
You need to carefully assess your employees, their categories, and their earnings. Do you need to withhold payroll taxes like Medicare or other social services? When do you need to issue forms? When do you need to send your payments to the IRS?
Payroll outsourcing services can help you here. By allowing the experts to deal with your payroll tax management, you can guarantee you’re paying correctly and on time, each and every time.
2. Benefits Administration
Your benefits are intricately tied up in your payroll, whether you know it or not. For some companies, their employee benefits package is based on how many hours an employee works or how long they’ve been with the company. In some cases, benefits premiums may need to be subtracted from payroll. In other cases, some benefits (such as vacation and sick days) will be paid out on payroll.
Payroll outsourcing services often include benefits administration as part of the package. It only makes sense, although the two are sometimes sold separately. Get the best value for your dollar and choose an outsourcing solution that provides both.
You may not think of reporting as an important payroll outsourcing service, but it is. Having easy access to all kinds of reports can make it easier to evaluate your payroll, your workforce management efforts, and more.
Trying to make a decision about which benefits to keep? Run a report and see how many employees are making claims or how many sick days your team has used. Want to know how much you’re paying to the IRS or how many payroll errors you’ve had in the last six months? Payroll outsourcing services can get you access to the reports you need.
4. Time Management
Your payroll will be connected to your time management and scheduling efforts as well. After all, if you’re paying employees by the hour, you need to know how many hours they’ve worked in order to pay them! The same goes when employees are taking time off. You need to know who worked overtime, who took vacation, and who was sick last week.
It should be no surprise payroll outsourcing services often include time management and scheduling as part of their solutions for your business as well. Since the two go hand in hand, managing them together with the same solution makes perfect sense for any business.
5. Direct Deposit
Are you still paying your employees with checks? The process of cutting a check is time-consuming and costly. It also slows down the payment process. Your employees probably don’t relish the prospect of waiting for their checks in the mail, just like you probably don’t like the idea of needing to purchase more checks.
Switch to direct deposit. Payroll outsourcing services can facilitate the switch. Make it easier and more efficient to pay your employees!