The benefits of outsourcing your payroll process
The Benefits of Outsourcing your Payroll
In the present era, managing accounting, payroll, tax and other financial responsibilities is a cumbersome and time-consuming affair. Most of the businesses still do all these activities in-house, without realizing big drain on their time caused by this routine administrative work. With all the day-to-day responsibilities, many business owners have found out that the payroll process is needed to be simplified by using an outsourced payroll provider. So why outsource your payroll services ? Well, here are 10 key benefits of doing the same.
1. Saves time
Typically, outsourcing your payroll is more efficacious than processing payroll internally. In general, this not only saves you money, but also saves and frees up your time while leaving payroll to the experts, and they can devote the saved time in other important parts of their business that enhances productivity. Moreover, these hours can be spent efficiently on ideas of better customer service and to tune other business operations.
Most importantly, outsourcing to a professional company can definitely increase the effectiveness because payroll takes a great deal of time as well as attention to detail for preventing errors.
2. Cost Reduction
It is said that cost saving is the byproduct of payroll outsourcing. Outsourcing your monthly payroll processing to a proficient payroll provider can save you a full headcount. Usually, it costs you much less than managing payroll internally and help you in sales, customer services and even make you enjoy great cost savings. For some companies, I have seen that payroll processing in-house causes a lot of hassle and they don’t realize that they are going to saves costs in the long run. Not only it reduces the probability of costly penalties by hiring a company to manage your payroll, but it can also save you large sums of money in other suitable ways.
3. Compliance issues and avoiding the penalties
According to IRS, “40% of the small business owners pay $845 per year as an average penalty of $845 per year for incorrect filings as well as the payments.”
These penalties turn out to be very costly, making the business owners meant responsible for any misinterpretation or failure for accurate repotting of employment taxes to both the federal and the state agencies of the government. Such mistakes arises situations that no business ever wants.
On the other hand, a professional outsourced payroll provider stays up-to-date about all the rules and regulations to avoid such mistakes. They are even involved in the calculation of payroll taxes, management of files and payments. Moreover, a reputed payroll provider keeps you informed about the regulation changes, which can be at best a real confrontation.
4. Direct access to a trained team of experts
Calculating employment taxes, researching and studying constant changes can be very time-consuming and a headache for the business owner and the payroll staff. Outsourcing companies are staffed with highly-expert and knowledgeable professionals who can answer queries of employees on the phone and act as a single point of contact for your employees.
Whenever they come to know about the changes in CPF rules or any other beneficiary programs for employees, they can conduct training sessions for the staff.
5. Better Security
Payroll processing is highly-intricate, with a risk of identity theft, misuse of funds or interference with company records at times. There is always a risk of not knowing how secure your network data is when using in-house payroll software. Therefore, outsourcing your payroll has turned out to be the best and safest solution for the privacy of your business information. They even strive to invest in reliable systems to store and protect your data, providing their customers a peace of mind.
6. Access for employees
HRIS system is vital for every business. It wastes a lot of time and money with this manual human resource management tasks. Therefore, outsourcing your payroll comes with an employee system access, allowing workers to directly view their payroll information. Employees can easily gain access to updated information, any corporate documents or even other enrollment benefits. This makes it efficient and easy for employees to get information and they don’t have to worry about maintaining it.
7. Avoiding technology headaches
Long gone are the days of manual calculations of payroll with the advances in technology. Payroll software’s are prepared to calculate anything is just a few seconds and the outsourced payroll system exempts your worry about the latest version of payroll software and even the tax tables installed on your computer. It keeps the things running smoothly and avoids any maintenance fee of upgrading software.
8. Losing payroll expertise
Hiring a professional payroll provider means hiring expert individuals who know the entire payroll processing inside and out. They specialize in best practices and compliance with government regulations of payroll. It’s what they’re trained to do, and they can provide you assistance when you need it. However, your in-house staff can try to achieve the same level of understanding, but it would take a large investment in time as well as effort.
9. Alternative payment methods of direct deposit is offered
Providing employees direct deposit can be difficult if the company doesn’t opt for outsourced payroll services. These services eliminate the use of paper checks and with direct deposit to your account number helps you to keep it confidential. They even offer pay cards to employees’ without any bank accounts. These options are also easy to stop any payments and reissue if necessary.
10. Peace of Mind
One of the supreme benefits of outsourcing payroll is the peace of mind that coming with it. Professional outsourcing payroll service provider takes away your worries, so that you can concentrate on your businesses’ growth. They take complete responsibility for errors and confident mistakes made by the employees.
Switching to outsourcing payroll platform can save you from several challenges, ranging from doing individual payroll calculations, any changes in rules and answering to employee’s queries about their payroll. Outsourced payroll provider also provides comprehensive reports and a direct access to payroll experts, while saving your precious time and money in the process. It also offers a great peace of mind and helps you focus more on your business.
Thousands of companies have switched to an outsourced payroll solution after realizing such impeccable benefits of the same.
What are you waiting for? Get started after looking for a good payroll outsourcing firm.