Nearly every business has employees, and to keep them coming to work each day, they need to get a paycheck. Payroll processing includes calculating pay, deducting taxes, processing time worked, vacation time and many other procedures that help track the employees worked hours.
More and more business owners are choosing to outsource payroll to companies that will take over this laborious task for them.
What a Payroll Service Will Do?
Outsourcing payroll can be a big benefit to employers. It removes a lot of the minutia concerned with payroll and gives the owner more time to concentrate on growing their business. Here are some of the things that a payroll service can do to help employers.
First of all, a payroll service is a third-party organization that helps with payroll processing. They will handle a myriad of tasks, including:
- Keep employee attendance records.
- Monitor workers’ compensation scenarios
- Calculate payroll taxes.
- Direct deposits
- Calculate wages.
- Keep electronic payroll records.
- Follow local and federal tax laws.
- Completing and mailing end-of-year earnings forms.
- Access to digitized pay stubs.
- Integrating third-party payroll benefits into the payroll
- Handing 401K savings deductions.
- Deductions such as health insurance, child support, etc.
- In some cases, human resources support.
Benefits of Outsourced Payroll Services:
There are numerous benefits to digitizing and outsourcing payroll. Here are some of the reasons and benefits according to Enterprise Talk.
- Increased accuracy. A third party will use their expertise to make sure there are no costly errors or penalties and that each paycheck is correct.
- Helps with compliance. Because they know the laws, they will make sure that each company is compliant with payroll laws and regulations.
- Security. Payroll providers use the latest security measures that protect your data from fraud and identity theft.
- Convenience: It enables the business owner to concentrate on growing their business. The payroll company digitally collects all the information needed. This provides digital records for each employee.
- Payroll problems can be avoided. Often employees have issues with their paychecks. This is often due to deductions, such as court-mandated child support or other deductions. With a payroll service, the owner doesn’t have to research and spend time amending the issue. All queries go directly to the payroll service to solve.
- Saving the environment. Most payroll services use direct deposit. This reduces paper use, while offering digitized access to the employee’s records. So they can see items such as taxes, healthcare costs, 401K payments, and other crucial information. There are fully paperless solutions out there now, no more basements full of records. (Editor’s note: Your basement’o’records is nice until it’s time to clean them out, and no one used their contents anyways)
Most business owners agree that using managed payroll services or similar firms for their payroll has resulted in time saved, accurate record keeping, and the ability to spend their time managing their business while leaving payroll and HR activities up to a third party.
In addition, as busy as year-end can be for business owners, who may have to inventory their products and work with their accountants on their year-end business activities, they no longer have to worry about conducting payroll and cutting checks.