Enterprise Payroll Services
Choosing a secure and qualified payroll service for your business: the pros and the cons
When your business employs hundreds or thousands of workers, maintaining your employees’ time and attendance and payroll processes can take up a significant amount of your human resources department’s time and effort.
Even with the assistance of payroll software, the HR staff still needs to devote many hours every pay period in order to distribute payroll effectively.
For many large businesses, the process of calculating and fulfilling payroll can represent a significant investment of time, money, and resources that could be better spent elsewhere. Employing an enterprise payroll service can help you lessen these costs, reduce staff, and enable your HR professionals to devote time to more important matters: your employees.
Payroll services providers offer a wide variety of services, from basic payroll management to nearly the entirety of your HR department’s workload. These tasks can include:
- Tracking and calculating employee hours, wages, time off, sick days, and benefits.
- Calculation of required payroll taxes, as well as federal, state, and local withholding.
- Printing of pay checks and/or distribution of funds into employee bank accounts via direct deposit.
- Printing and filing payroll reports, year-end tax documents, and W-2 forms.
Benefits of Outsourcing
When you manage your payroll tasks within your business, only a few individuals may be in charge of the entire process – and they may be the only ones in the company who understand how that process works. Should those employees leave suddenly, your business could be left at a severe disadvantage until new staff is hired and trained.
Payroll service providers can offer your employees greater confidentiality and security. Their sensitive information is managed and stored offsite by the payroll company, which specializes in processing payroll data and other employee information securely. With this information stored off-premise, you can be sure that a disgruntled HR staff member can’t quit their job and walk away with a list of their coworkers’ social security numbers and birth dates.
However, by outsourcing your payroll functions, you no longer have to worry about the effects of staff turnover on your payroll process. In fact, you could replace your company’s entire staff without experiencing any disruption in payroll or benefits allocation.
The Final Word
No matter who processes your payroll, your company is ultimately responsible for the deposit and payment of all your federal and state tax liabilities. Your contract with your payroll firm accords them the responsibility of paying your taxes in a timely manner.
That said, be sure to monitor your payroll firm and ensure that they are paying your taxes for you on time and in full. Some companies fail to pay taxes immediately, instead holding the funds in their account to profit from the interest.
You – not your payroll service – will be held liable for taxes, penalties, and interest due should this occur.
Outsourcing your payroll processes to a third-party provider can cost your business significantly less than preparing payroll in-house.
You can also save money by utilizing a provider that offers management of retirement plans, health insurance, and workers’ compensation insurance in addition to payroll. If your business manages a large volume of employees, look into streamlining your HR processes with a payroll services provider.