Timely payment of wages is necessary for employee satisfaction and to keep them motivated. The shortest time in this sense can be very expensive. However, managing payroll is a difficult task for even the most competent employee. Personnel changes, deadlines, and changing tax regulations only make the situation worse, causing unnecessary delays and inefficiencies. A payroll service can take care of all your payroll requirements and relieve you and your employers of unnecessary stress and hassle.
Outsourced payroll services become even more important for startups. While you handle everything from product development to advertising, marketing, and sales, payroll is a function that can easily be outsourced to a payroll service.
More than a quarter of companies already enjoy the benefits of outsourcing payroll. These are the main benefits you can expect from outsourcing.
Free payroll software
Payroll outsourcing eliminates the need to purchase, install, support, and maintain payroll software and reduces the IT manpower required, resulting in several immediate cost reductions. Several payroll companies also offer software integration into their office accounting systems along with customization. Plus, payroll services regularly update their software, giving you another indirect cost benefit.
Easy scalability at minimal cost
When you outsource to a professional service, you don’t have to worry about adding new staff to deal with business growth. They are also in charge of reassigning tasks, layoffs and unemployment insurance for the contracting companies, thus freeing the holders of this responsibility at affordable prices.
Focus on your core business
Payroll occupies a total of eight to ten hours of employee time, each pay period. Payroll outsourcing saves employees valuable time that can be spent on critical business issues to improve productivity.
Employees prepare and submit their own payroll data
Payroll services use software as a service, which delegates to employees the responsibility of collecting and submitting work hours themselves. For this, each employee uses their username to enter information about working hours on electronic time cards on the suppliers’ website. Once finalized, these are electronically reviewed by the manager, who can approve or return any inaccurate time cards. Presentation, approval, and correction defaults ensure that employees are paid even when the manager is not available to review time cards. Most services also accept variable payments, such as bonuses, commissions, and penalties.
Convenience of paper pay checks or direct deposit
You can have paper checks sent to your office or provide direct deposit to employees. In any case, the payroll company handles the withholdings and legal contributions to the health and retirement plans.
Responsibility for regulatory compliance shifted to the payroll service
The biggest headache when processing payroll is keeping up with changes in tax regulations, leading to unnecessary fines and penalties for your business. Payroll services can better handle mandatory tax regulations and ensure compliance. Plus, the payroll services themselves pay the penalties, if any, saving you money and worry.
Payroll outsourcing can be one of the most profitable decisions you make. Go ahead and hire a payroll service to reap the benefits of increased production and business profits.