Although the new year has begun, it's not too late to bring on a payroll management company. But is it the right move?
Odds are that if your company has been growing over the last year or two you are probably feeling the growth pains and even realizing the need for help with your payroll management. However, deciding where to turn, or how to get started, can be frustrating.
There are many options and making a decision with your payroll process is not light thing.
The problem is in maintaining efficiency while staying compliant, which is an increasingly difficult task for any smaller business. Yet, it is absolutely essential to keep this important facet of your business's finances under control while keeping the process cost-effective.
While It may appear that integrating a new your payroll management approach into the overall business plan of your company is a major task, it is vital to the continued growth and health of your company.
And the end result will be a payroll system that runs smoothly.
In general, payroll management refers to the administration of payroll tasks. Among other things,this can include recording data related to the hours worked by your employees and calculating staff paychecks. In addition, there are a number of other aspects of payroll and compliance, such as paid time off and sick leave, that have to managed, as well as the calculation of employee wages.
Being overwhelmed by the volume of work that can be involved may lead to unfortunate situations like payroll errors. Failing to properly pay employees, for example, can cause employees to become disgruntled over time while making it impossible to properly record the transactions in the books. This not only creates employee issues, but it ties up the finances of your business while your staff works to correct errors.
Payroll management can also involve time keeping, as well as the calculation, withholding and remittance of payroll taxes. There is also the calculation of social security, federal unemployment, federal income and state income taxes. Not to mention health care benefits, share-of-premium calculations, and the compliance required every step of the way.
Probably the single, most obvious benefit of outsourcing all these tasks is that they are simply no longer needed to be done by your own staff! The time and resources gained by outsourcing will more than pay for the investment over time.
Benefits of Outsourcing your Payroll Management Process
Your business can benefit in a number of ways when you opt to outsource your payroll management process. For example:
- Managing payroll correctly from the start saves time by eliminating the need for managers to scramble to gather the information needed to calculate payroll.
- Failure to properly withhold taxes from employees' paychecks can cause serious problems with the IRS. Hefty penalties may be assessed, so managing payroll to ensure that taxes are accurately calculated and withheld is a must.
- Calculating payroll seems like a simple task, but ensuring that all of your employees are paid on the appropriate date is not always as easy as it seems. Managing payroll keeps information accessible for the calculation and issuance of paychecks. Employees receive their pay on time when payroll is properly managed.
- Records may need to be accessed in the future to determine financial information. This may be used during audits or when an employee files a complaint related to their pay. Managing payroll ensures that these records are complete and easy to find as needed.
- Employees expect to be paid for the benefits that they were promised when they were hired. Failure to accurately calculate these benefits can lead to underpaying employees. While this error can be corrected in subsequent paychecks, employees are counting on being properly paid when they earn their pay.
Outsourcing as Part of Your Overall Business Management Plan
Most entrepreneurs start up their businesses and then do most of the work themselves, taking on the responsibility for marketing, sales, HR, technology, and other functions of the business.
Many smaller and medium-sized businesses will continue to process their payrolls in-house, especially when they have invested in payroll personnel and training. While this is a typical approach, many companies eventually find that it can begin to have a negative impact on their overall performance and bottom line.
Ultimately, the decision to outsource is a strategic one while keeping payroll in-house is a tactical choice.
Payroll management may only be one component of a strategic business management plan, but it is an essential component. The proper calculation of payroll and the timely issuance of paychecks has an impact on other parts of the business.
Payroll management also ensures that your financial records are accurate. You will not have to worry about going back to make changes because of a miscalculation in payroll. Even a small error can have a huge impact on your company's financial records, so integrating payroll management into your overall business plan is essential to the continued success of your business.
Considering Your Best Payroll Outsourcing Options
In addition to the time and dollar savings, having the peace of mind of knowing that your payroll processes are being handled competently, accurately, and on time is a great reason to consider outsourcing.
On top of that, you can be assured that the accountability and liability for compliance rests with your vendor, freeing you from the constant pressure of staying fully informed and compliant with the ever changing - and growing - rules, regulations, and legislation.
As a business owner or payroll manager you have a number of options for your payroll functions. Software that can be installed in-house, or cloud-based programs offer a good alternative. But if you really want to take full advantage of the benefits available to you, outsourcing to a provider like Accuchex can still be the best decision.
Reliability, full-service options, and reputation are the hallmarks of a quality payroll management service provider. If you are currently looking to invest in outsourcing your payroll management, get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.