If you’re considering outsourcing your payroll function, you’re not alone. Caron Beesley, small business owner, marketing communications consultant, and SBA blog contributor says payroll is the first thing many small businesses outsource as a cost-effective business strategy. Additionally, top payroll companies offer complete workforce solutions that efficiently manage time and labor and human resources functions for businesses of all sizes.
Why Do Companies Outsource Payroll?
It’s not hard to figure out why companies outsource payroll. It’s a time consuming, detail-ridden area of business management that has financial and legal consequences when not handled properly. The benefits of outsourcing payroll to top payroll companies are many, including reducing the risk of IRS penalties from incorrectly filing payroll taxes, missing filing deadlines and deposit requirements, reducing payroll processing and overhead costs, having payroll experts available for questions, and expanded software capabilities.
When Should Companies Outsource Payroll?
During busy day-to-day and ongoing business operations, it’s easy to overlook the signs that a company would benefit from outsourcing payroll. But if payroll deposit deadlines are getting missed, if payroll tax calculations aren’t always correct, or your costs to process payroll and human resources functions are steadily increasing, it’s time to compare the hours and costs of your current payroll processing to several payroll service plans to see what is more cost-effective.
What Workforce Solutions do Top Payroll Companies Offer?
Beyond basic payroll services including calculating payroll and tax obligations and related services like direct deposit and payroll tax filing, top payroll companies offer complete workforce solutions to help employers manage their human resources functions.
Top payroll companies can manage time and labor issues to capture essential data, streamline record-keeping, and help employers schedule their workforces without manual calculations that lead to costly errors. Features like web entry, mobile time clocks, GPS and mobile apps, combined with payroll integration, take the pain out of timekeeping.
Another area of workforce solutions offered by top payroll companies is human resources. Applicant tracking systems help employers automate their recruiting and onboarding processes. Human resources functions managed by payroll companies help employers manage confidential candidate and employee information, provide employee portals to enable employee self-service for benefits and employee information, conduct employee surveys and performance evaluations, and better manage productivity.
Custom payroll services can also integrate employee payroll and management solutions with a company’s existing systems along with providing expert payroll, tax, and human resources support. They can provide automated functions and expert support more cost-effectively than many small employers can perform in-house, and provide more efficient and accurate services for sensitive compliance issues to manage liability and expense.
It’s not difficult to determine if outsourcing payroll and workforce solutions is the best thing for your company. Compare your current costs to perform human resources and payroll processing to a service’s offerings and costs. A quick demonstration of key processes may be all that’s needed to see how much time and money can be saved by outsourcing.