What Does Payroll Processing Do For You?
Posted by Matt Krautstrunk on June 9, 2011 in Business Management [ 3 Comments ]
If you’ve never had experience paying employees, the process is similar to navigating a forest with no compass. This unfamiliarity with a business unit is the reason why many businesses choose to outsource.
Why does your company outsource its payroll? Is your primary reason to reduce costs, or are you looking to transform your process of capabilities? If your business is feeling understaffed in HR, or you just quite simply can’t figure out how to properly pay your employees, outsourcing payroll processing may be for you.
Paying your employees is often not as easy as one click of the mouse. According Unique Soft Tech, “40% of the entire administration time of a small business concern deals with payroll processing.” Given this fact if your administration is swamped with work, and holding your business back, payroll outsourcing can alleviate the burden.
Outsourced payroll services aren’t only convenient; they can lead to cost savings for your business. Most payroll services will be able to allow you additional tax savings, aid in job reporting costs and offer strategic staffing solutions. Some of the most popular payroll processing services include:
- Tax Management: Many outsourced payroll processing packages will handle your payment of employees as well as employee taxes. Taxes can get tricky if your company has employees working under different payment methods (contractor, salary and hourly); however, payroll processing expertise allows you to tackle any issues regarding tax compliance and gives you withholdings amounts per employee.
- Reporting on Costs: Is tracking ROI important for your business? Reporting services will be able to track all employee costs, (benefits, wages, and commissions) and give you a holistic report on how this contributes to total business expenses.
- Direct Deposit to Employees: One of the most popular features, as of late is the ability to incorporate direct deposit payment. Depositing employee wages directly in to your employees bank is a feature that is commonly sought after by employees. A convenient way to track and monitor payments without having to deal with lost or default checks.
- Online Account Access: If your business offers direct deposit you may want to offer online account access as well. This is convenient for both employees and businesses to access payment information in the case of a discrepancy. This service adds transparency to your payroll and gives you the ability to track location and make changes.
It’s true that most businesses are saving money by outsourcing. One of the primary reasons that a business will outsource payroll is to save costs associated with in-house employees. Outsourcing payroll can complement your existing HR structure or drive it strategically. The payroll processing package that will fit your company is completely unique to your needs. What is payroll processing doing for you?
If you would like to receive price quotes from payroll processing vendors, click here.