A successful business is built upon a sound strategy supported by a comprehensive plan. A good strategy can also mean that some of your business functions shouldn't stay in your business.
If your business is like most, you may have already considered outsourcing certain functions. Often it's the more time consuming, but non-operational tasks like building maintenance and cleaning. Most businesses will outsource their tax filing, as well as soon as possible.
Eventually, many businesses come to a place where they begin to look into the possibility of using a reliable payroll management company. Outsourcing payroll is a common tactic that even smaller companies will take to reduce their overall costs and free up resources.
However, despite the benefits it can provide, outsourcing your payroll management is a big undertaking and understanding how to get started or where to turn can be challenging. It is for this reason that some businesses decide to forego this option and continue to manage their payroll in-house. The problem for many of these organizations is that, as they continue to grow, simply keeping this aspect of their financial management under control can become an overwhelming task.
Aside from considering the potential costs of outsourcing, it is critical to consider the strategic benefits of handing payroll management to a third-party firm. And seeing it as a strategic decision is critical. Too often, owners or managers tend to view these types of decisions as expenses as opposed to investments. Strategically outsourcing key functions such as payroll management is definitely an investment.
Consequently, while it may seem to be a major task to integrate payroll management outsourcing into the overall business plan of your company, the end result will be a payroll system that runs smoothly, accurately and cost-effectively.
Why Choose a Payroll Management Company
Payroll management involves the administration of your business payroll tasks. This typically includes recording data related to the hours worked by employees and calculating paychecks. In addition, there is the calculating of benefits like paid time off and sick leave that have to be factored into the calculation of wages. It is typically very labor-intensive work, even with the use of payroll software.
Payroll errors or worse, failing to properly pay employees, can damage workplace morale and trust, while making it impossible to properly record the transactions. This, in turn, ties up the finances of your business while you work to correct the errors.
Payroll management also requires the calculation, withholding and remittance of payroll taxes. This includes social security, federal unemployment, federal income and state income taxes. And none of this is easy.
The single, largest benefit of outsourcing all these tasks is simply that they no longer have to be done by your own HR or payroll staff. And the time and resources gained by outsourcing more than pays for the investment involved.
Benefits of Outsourcing to a Payroll Management Company
The proper management of payroll offers your company a wide range of benefits that should be explored when considering outsourcing, such as:
- Ensuring that all of your employees are paid on time is not always as easy as it seems. Managed payroll keeps information accessible for calculating and issuing paychecks.
- Managing payroll correctly saves time by eliminating the need for managers having to gather the information needed to calculate payroll.
- Records may need to be used during audits or when an employee files a complaint related to their pay. A managed payroll service ensures that these records are complete and easy to find when needed.
- Failure to accurately calculate employee benefits can lead to payroll errors. While these can be corrected in subsequent paychecks, employees expect to be properly paid each pay period.
- Failure to properly withhold taxes from employees' paychecks can cause serious problems with the IRS including penalties. This is prevented with managed payroll that ensures taxes are accurately calculated and withheld.
Knowing the distinct benefits you gain with managed payroll services will help you in developing your strategy to outsource your payroll process.
Managed Payroll as a Business Strategy
Payroll management is just one component of a strategic business management plan, but it is an essential one. The proper calculation of payroll and taxes, and the timely issuance of paychecks, has a significant effect on other aspects of the business.
For example, employees who are confident that you will pay them in the proper amount by their payday are going to be far more motivated to be productive while at work. And, in addition to time and money savings, you have the peace of mind of knowing that your payroll processes are being handled competently, accurately, and on time.
Payroll management also ensures that your financial records are accurate. In addition, you can be assured that the accountability and liability for compliance rests with your service provider. This frees you from the constant pressure of having to be fully informed and compliant with ever changing and growing legislation.
Your Best Payroll Outsourcing Option
Business owners and payroll managers have a number of options for payroll functions. Software can be installed in-house, or cloud-based programs can be subscribed to.
But if you really want to take full advantage of the benefits available to you, outsourcing to a provider like Accuchex is still be the best option. 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 Payroll Outsourcing Guide to help you make an informed decision, or call Accuchex Payroll Management Services at 877-422-2824.