If your company has been growing and expanding for any length of time, it is wise to consider outsourcing some management functions. Along with HR, payroll management is a common choice. However, knowing how to get started can be challenging.
There are a number of options available and making a decision to hand off your payroll process is not small thing.
However, one of the problems businesses face with keeping payroll in-house 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 seem that changing your payroll management approach is a major task that will also impact the overall business plan of your company, it can be crucial to the continued growth and health of your company.
And the end result will be a payroll system that runs smoothly and with less stress.
Payroll management typically refers to the administration of all your payroll tasks. Among other things, this can include recording the hours worked by your employees and calculating staff paychecks. In addition, there are many other aspects of payroll processing and compliance, such as paid time off and sick leave that has to be calculated, as well as the employees normal wages.
Unfortunately, payroll staff can quickly become overwhelmed by the volume of work that is required which can lead to situations such as payroll errors. Failing to properly pay employees, for example, can cause issues with for your staff while making it difficult to properly record the payroll transactions.
Payroll compliance errors become increasingly common as the workload escalates. This not only creates potentially costly legal issues, but it ties up the resources of your business while your HR or payroll staff works to correct errors.
Payroll management typically involves time keeping, as well as the calculation, withholding and remittance of payroll taxes. In addition, there is calculations of social security, federal unemployment, federal income and state income taxes. And, finally, there are health care benefits, share-of-premium calculations, and the ever-increasing compliance issues required throughout the process.
Perhaps the most obvious benefit of outsourcing all of these tasks is that they are no longer being done by your own staff. For many businesses, the time and resources gained by outsourcing will more than pay for the investment over time.
Your business can benefit in a number of ways when you opt to outsource your payroll management process. For example:
Many smaller businesses continue to do most of the work themselves, fulfilling the roles of marketing, sales, HR, technology, and other functions of the business, even after they have grown substantially.
Specifically, a large number of these smaller and medium-sized businesses continue to process their payroll in-house. This is especially true once they've invested in payroll personnel and training. While this is understandable, many of these same companies may find that this can eventually have a negative impact on their bottom line.
Ultimately, the decision to outsource is a strategic choice.
Payroll management is only one component of a strategic business management plan, but it's critical one. Accuracy and timeliness of paychecks has a direct impact on other parts of the business, not to mention employees.
One of the major advantages of outsourcing payroll management is that your financial records are accurate. You don't have to incur the costs of going back to make changes because of a miscalculation in payroll. Even small errors can have a huge impact. Outsourcing your payroll management as part of your overall business plan can be essential to the continued success of your business.
Along with time and dollar savings, outsourcing your payroll can offer the peace of mind of knowing that your payroll processes are being handled competently, accurately, and on time.
In addition, you have the added assurance of knowing that the accountability and liability for compliance rests with your vendor. This can free you from the constant pressure of having to stay fully informed and compliant with the ever changing rules, regulations, and legislation.
As a business owner or payroll manager you have a number of options for your payroll functions such as software that can be installed in-house, or cloud-based programs. But to truly 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.