Payroll outsourcing to a third party payroll provider – there are a number of benefits to all kind of businesses. outsourcing payroll to a third party payroll service provider means, you are putting your employees payroll to the hands of experts. and you are focusing your mind and expertise only on business and taking advantage of technology and expertise that you may not able to afford in- house.
To run any business smoothly payroll is one of those process that is essential ,but not crucial to sales and business growth. This is why payroll can feel like a drain on work hours and resources – resources can be better spent in money making .Payroll is complex and pay runs need to be made on a regular basis, so this function does not just go away once it is done. While some business opt to handle payroll functions in- house through manual book keeping or do-it- yourself payroll apps , other business owners have come to prefer the expertise of a professional payroll provider. When considering whether to outsource this functions ,the time and resources required to complete essential payroll tasks often weigh heavily in the decision making process. Question may arise that how payroll outsourcing help your business to develop? Since payroll and tax responsibility can be time consuming and complicated – yet essential , busy owners are increasingly looking to outsource this functions. Some common benefits of payroll outsourcing, areas of your business where a provider may be able to help, and how this approach could make sense for your business. The benefits of outsourcing your payroll means that you can :
- Common time – consuming payroll and get accurate, complaint payroll on time, every time
- Save on cost.
- Potential time saved.
- Enhanced security of payroll data.
- compliance with government regulations.
- Payroll expertise
- Employee self service features.
- Expert service only a call away.
Payroll processing is indeed a brain storming process ,Outsourcing payroll can free up staff to persue other important value added and revenue generating activities.
Save on cost ; The direct cost of payroll processing can be greatly deducted by working with an efficient payroll provider . Moreover cost saving for the company on outsourcing payroll processing is excrtimingly significant and it can go up to 500%at times also.
3 Potential time saved .- No matter how many employees a business has , processing payroll demands time and attention to detail. This often comes at the cost of valuable times that could otherwise spent on more pressing business priorities, such as building revenues or serving customers. By outsourcing payroll to a reputed provider , owners have more time to focus on what matters most to them. In many cases , they will also have a variety of option available to maximize time saved throughout the pay period .Additional tasks , such as new hire reporting or benefits administrations, can be easily added into the outsourcing mix, and business owners can specify how often they would like to be contacted regarding payroll related tasks. If there are not any discrepancies or problems , payroll providers will likely only need to reach out once per pay period to notify owners that payroll has been processed successfully. Once a businessman has hired its first employee, payroll responsibilities will continue every pay period. As noted above , the complexities of payroll processing require a significant time commitment on a daily and weekly basis – time you cannot make up elsewhere. Whether it is calculating payroll amounts , generating in – house report preparing and remitting state and central payroll taxes and returns, or simply printing , signing, and distributing pay checks, the demands on your time can be costly. Management can focus more on dealing wealth pivotal business issues instead of nitty gritty issues. This in turn help in saving time and energy which can utilized for better use.
4 Enhance securities of payroll data – Payroll processing is a complex and potentially risky business operation . Even with trusted partners , there is always a risk of identity theft, embezzlement, or tampering with company records for personal gain.
Outsourcing payroll to a stable, experienced provider can offer a “safe haven” for your confidential payroll data. In addition to redundant back up and multiple server locations ,a quality payroll provider invest instate-of – art systems for storing and protecting data, simply because it is part of the service provided to clients.
5 Compliance with government regulations – Business understand how critical compliance is in their operations, and peace of mind with regulations is very important. Whether you have three employees or thirty , having to track every empoloyee’s
pay rate, hours and employee status can br stressful and can possibly lead to in accuracies. Additionally understanding employee deductions for central and state, qnd local taxex- as well as programs like social security and medicare – can be challenging. These taxes must be set up correctly before employees are initially paid.
When you outsource payroll , you can simply these process and streamline all your employee and payroll information ,Although business owners are ultimately responsible for meeting payroll accuracy and tax filing requirements, having a provider on hand often helps them feel more confident about staying up- to – date on regulations . Government rules and regulations often change , and small business owner cann’t always stay on top of the latest requirements. Professional payroll providers on the other hand ,are obligated to stay current with rules and regulations, and changesin tax rates for all geographic locations.
6 Payroll expertise – A professional payroll company employs individual who knows payroll processing inside and out. These individual specializein the complexities of payroll processing and taxes,as well as complience with government regulations. It’s why they are trained to do and paqrt of the guaranteed service they provide.
Reputable payroll processors bring expertise in the following areas :
i) Knowledge of regulation and integration with payroll deduction .
ii) Updating forms and adjusting accurate tax deductions.
iii) Managing voluntary and involuntary employee withholding and submitting them to the proper government entitles and benefits programs.
iv) Calculating and submitting quarterly and year end payroll taxes.
v) Mantaining eligibility for tax credits and minimizing amount owed.
vi) Tracking employees benefits eligibility dates and processing benefits.
vii) Updating central , state tax guideline and adjusting payroll figure as needed to maintain compliance.
Payroll experts are also very good at verifying accurate data, finding mistakes ,and correcting them before it becomes an issue. Many companies offer benefits to their employee contributions must be deducted from payroll .If your company offers multiple healthcare plans, each with different contribution amount , managing these figures can become quite complicated . These contributions can further impacted by am employee ‘s status( singlevs. married, dependents vs. none, etc.)as well as their salary level.
During the benefits enrollment period,employees may have the option to register for multiple typesof benefits
;health insurance, life insuranceamd more.Each of these requirs separate contribution amount for both the employee and the employer to ensure the benefit programme stay active and properly funded. Outsourceing payroll helps ensure that your deductions are aligned, that what you ‘re offering complies with regulatory guidelines , and that payments to payroll companies can provide an integrated benefits platform that allows a business owner to easily add and remove employees from the benefits programs, properly calculate the amounts deducted from each paycheck, and provide benefits information directly to the employee without requiring the owner to handle individual employees benefits issues directly .
7 Employees self service features.- Having an integrated payroll platform with employees self service options saves time and money by allowing them to handle common tasks on their own, including ;
- submitting time – off request.
- Printing tax documents
- Completing on boarding paper work.
- Updating benefits and tax allowance forms.
- Swapping shifts.
- Updating personal contact information .
When these key business functions are outsourced , mant reputable payroll providers will also offer mobile application and remote access for employees self service .
8 Expert service only a call away – Outsource payroll experts are always available at your beck and call. So you don’t need to keep a close watch on the constantly changing rules . Also you are free from updating your latest payroll software. Manual payroll is a headache and many times becomes a nightmare in worst cases . Business owner who outsource payroll curtail a tiresome source of personal pain.
BEST PAYROLL SERVICE PROVIDER COMPANIES.
ADP is the largest and probably best- known payroll processing company. Ramco also provide End-to-End payroll needs of large scale organizations. Some well known payroll provider are following
>Mindsolution
>Megasoft
>People Strong
>GUSTO
>Rkco Group
>Paysquare
>Paychex
>Deluxe PS
COST OF OUTSOURCING PAYROLL
It depend on number of hours involved in services and the scope of work you ask to service provider. payroll services can starts as low as INR 2000 , depending on your requirements. It also varies from city to city , in Bangalore the rates start from Rs. 100/- per person, monthly , subject to negotiations.
Thanks for Reading .
Rupa Banerjee – Payroll Editor .
Email : rupabanerjee70@gmail.com