Running and growing a successful business requires a sound strategy supported by a well-thought out plan. And sometimes a good plan means that not everything in your business needs to stay in your business.
If your company has been growing for a while, odds are you are probably already considering the possibility of using a reliable payroll management company.
Outsourcing is a big undertaking and understanding how to get started or where to turn can be challenging. Yet, keeping this important aspect of your business's finances under control in-house can become an overwhelming task.
And, 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.
Why Consider Payroll Management Companies
Payroll management refers to the administration of business payroll tasks. This includes recording data related to the hours worked by employees and calculating paychecks accordingly, but the task is not this simple. Benefits like paid time off and sick leave will have to be factored into the calculation of wages.
Failing to properly pay employees can cause employees to become disgruntled while simultaneously making it impossible to properly record the transaction in the books. This ties up the finances of your business while you work to correct errors.
The task also requires the calculation, withholding and remittance of payroll taxes. This includes social security, federal unemployment, federal income and state income taxes.
The single, largest benefit of outsourcing all these tasks is simply that they are no longer required of your own HR or payroll staff! And the time and resources gained by outsourcing more than pays for the investment involved.
Outsourcing Payroll Management as a Business Strategy
There are many strategic reasons for outsourcing your payroll to a professional payroll management services company. While you may want to retain some of your general accounting operations such as accounts payable and managing your receivables, payroll is almost always a good function to outsource.
It may seem that it would be more cost-effective to keep all of your payroll functions in-house, the truth is that many companies - both large and small - discover that the cost-savings can be substantial. In addition, there are other benefits that are not easily measured in dollar amounts, but that are just as viable and just as valuable.
With HR managers becoming increasingly overwhelmed with added responsibilities, growing regulatory obligations, and a continually changing payroll landscape, the requirements are staggering. Managing the complex interactions between departments and the growing demands of federal, state and local agencies can sap a payroll or HR department.
Outsourcing can allow you to safely and cost-effectively delegate one of the more burdensome processes to a reliable vendor and strategic move on a number of levels.
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:
- 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.
- Managing payroll correctly from the start saves time by eliminating the need for managers to scramble to gather the information needed to calculate payroll.
- 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.
- 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.
Understanding what you gain from these benefits will help you in your decision to outsource your payroll management systems.
Using a Payroll Management Company as a Part of Your 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.
Payroll management also ensures that your financial records are accurate. 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. And you won't have to worry about going back to make changes because of a miscalculation in payroll.
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 Payroll Outsourcing Guide to help you make an informed decision, or call Accuchex Payroll Management Services at 877-422-2824.