Business owners know how valuable their time is and they don’t want to make mistakes regarding any of the important aspects of human resources management including payroll and taxes. A major choice is either doing payroll and all its related aspects in-house or choosing to outsource payroll.
9 Reasons to Outsource Payroll
Payroll outsourcing means engaging a specialist third-party organization to handle payroll and related activities including tax reporting, regulatory compliance, unemployment claims, and data security. Frankly, payroll takes a lot of time, and it can be complicated because taxes are complex and tax laws change all the time. Payroll outsourcing can be beneficial to all sizes of businesses.
Employers choose to outsource payroll for these 9 reasons:
- Save time that can be focused on revenue-generating and business-building activities.
- Provide quality professional resources and expertise that may not be available in-house.
- Minimize or eliminate payroll mistakes that may result in serious problems.
- Improve data security and protect confidential data.
- Maintain government compliance.
- Integrate data. Payroll can be more effectively connected to time and attendance, benefits, and other HR functions.
- Facilitate employee self-service so that employees could view their own pay information, log their own working hours, and manage their withholdings.
- Reduce costs by eliminating fines and penalties resulting from late filings and mistakes.
- Effective reports can be generated for management and accountant use.
What Can a Outsource Payroll Provider Do?
A payroll outsource payroll provider can offer these services:
- Payroll processing (and it can integrate with an accounting system.)
- Payroll tax calculations and filing.
- Employee pay options, including direct deposit.
- Employee self-service for many pay and time-related matters.
- Employee record-keeping.
- Timekeeping and processing time-off requests.
- New hire reporting.
- Wage garnishment processing.
- Quarterly, annual, and custom reporting.
- Compliance monitoring.
- Unemployment insurance and benefits.
An outsource payroll provider can add experience, efficiency, security, and scalability to your business.
How to Choose a Qualified Outsource Payroll Provider
It is important to make a well-thought-through evaluation when you decide to select a qualified outsource payroll provider by using these factors. First, determine the requirements of your business including multiple pay frequencies, and employee pay classes. Second, examine the reputation of potential vendors. Third, carefully review their experience and expertise, including how long they have been in business and the experience levels of people that would be assigned to your account. And understand how they will approach your business’s needs. Fourth, evaluate the software that they use, what level of security they offer, and how they handle errors. Fifth, review the range of services that they offer and make sure that their services match your business’s needs. And sixth, take a hard look at the cost of their services.
Possible Specific Questions to Ask Before Finalizing Your Choice of an Outsource Payroll Provider
Ask questions like these: How long have you been in business? Do you have experience in my industry? How do you handle customer service? Can I speak frequently and directly with your account representative? How do you keep up with tax laws? How secure is your system?
Choose An Expert Accounting and Bookkeeping Company
Contact Doerhoff & Associates CPA, Based in Jefferson City, MO. Our goal is to provide what the small business owner needs to run his/her business successfully. Every business owner has a unique set of needs for accounting services. We have several pre-packaged service suites as well as customized services to suit your needs. We can support you so that you can grow.