As a business owner or payroll manager you are not only responsible for making sure your staff is paid accurately and in a timely fashion, you also have the constant pressure of compliance, time tracking, and all the other aspects of managing and processing your payroll every pay period.
The cost of the labor alone can be enough to cause you to consider automation or outsourcing options such as managed payroll services. And the prospect of letting someone else take on the reporting and paperwork makes those options even more appealing.
But where do you go? What kind of service do you really need? And do the benefits outweigh the time and cost of managing your payroll in-house? For starters let's look at managed payroll services and what they do:
Using managed payroll services means outsourcing all the functions of your payroll process. This will include all the related data entry, generating reports, and maintaining compliance. As the client, you will be required to provide the necessary payroll information to the payroll services provider. Other related services may be available, but the bottom line is that aside from collecting the appropriate payroll data, you have to do little else.
Businesses of all sizes often find that this is a suitable and cost-effective approach to managing their payroll needs as it reduces or eliminates their administrative and personnel costs. In addition, a business does not need to have pay, taxation and compliance expertise as the service provider manages that for them. Annual changes in tax codes, statutory payments and deductions, and staying on top of compliance with the current legislation can require a full-time position for many businesses!
Once you have determined that a managed payroll service provider may be the answer for your business then there are certain things you need to look for in a provider:
Reputation
Technical expertise
Service-oriented
Hiring a managed payroll services provider is no small thing. While the cost will be easily made up in savings over time, it is a significant investment and should be approached with the appropriate due diligence. But it is also a decision that can free up essential resources for your future growth and success.