One of the vital and sensitive parts of having your own business is organizing your employees “payroll”. If the people or the person tasked to do this job are not able to do the task properly, you will lose a huge sum of money. One thing you need to ponder on is that there are penalty charges for businesses that fail to correctly calculate their payroll taxes. Also, there are differences when it comes to each employee’s salary. These differences may include shift differentials, benefit contributions, etc. This only means that payroll tasks are quite complicated.
What Do Payroll Providers Do?
Payrolls can be a quite complicated task to do, not to mention the legal requirements that are needed. This may also mean that, if not done right, serious risks might occur. As for many entrepreneurs, they should leave this task to the experts.
As for payroll providers, they can do the task at a relatively low cost, in most cases, because they make use of the latest software yo automate many of the tasks involved.
Furthermore, payroll providers may offer different types of services that you can choose from, depending on the needs of your business. Such services are as follows:
- Keep all your payroll records.
- Make payments to your employees.
- Filing and paying your taxes.
- Tax deduction process.
- Work out payments (including benefits and reimbursements).
- Make other deductions, such as retirement contributions.
Types of Payroll Services
As a business owner, you should also understand that payroll service providers are not all the same. Just like other outsourcing companies, payroll service providers also come in all shapes and sizes.
These people can be accountants, bookkeepers, or specialist payroll companies. More so, some companies may do better in handling small payrolls and others may be able to handle big companies. There are two types of categories for payroll services:
- Full-Service Payroll Provider – this type of provider manages all your payroll processes from start to finish. As a business owner, you need to give them all your business and employee data. This type of payroll service can be generally easier, however, expect that it will cost more. These people will also need access to private information such as your employee timesheets, and a notice of changes to your worker’s employment terms or tax status.
- DIY Payroll Providers – there are also payroll providers who handle the grueling parts of payroll and leave the basic admin work to you. Examples of which is, keeping your employee records, employee’s working hours, and attendance. On the other hand, they will be calculating all salaries, taxes, and deductions.
Outsourcing Payroll Services
Outsourcing your business’ non-core function is one strategic way of managing your resources and productivity. Since your non-core functions do not involve your customers and are not centered on gaining you a profit, they are a good subject for outsourcing.
As for most businesses, their administrative and back-office processes such as the payroll is one of their non-core functions. Plus, it doesn’t necessarily differentiate their businesses strategically from their adversaries. The task in hand can be very tricky and overwhelming at times, even for smaller and especially to start-up companies. This is why many businesses have also made use of payroll outsourcing services.
If you are a businessman who is considering to have a third party manage your payroll, check out this list of tips before deciding:
1. How can you ensure the safety of your business and your employee’s private information?
Of course, sharing private and sensitive information about your company to another company can be pretty scary. A lot of incidents have occurred concerning breaches on stored data. Look for a company that can provide interminable data security and has also a disaster recovery system for unwanted emergencies.
2. Who will be responsible for penalties caused by incorrect tax filings?
As mentioned above, inaccurate tax filings result in a huge sum of penalties on an annual basis. It is viable that errors may have been from acquired payroll services. In looking for the right payroll service job, a lot of companies will certainly promise to have quality and accurate services. However, you have to look for the company that will take full responsibility for their errors instead of passing them on to you.
3. What they can do in addition to payroll tasks?
A lot of payroll service providers also incorporate HR services in their offers. Aside from payroll, these companies may also manage some of your payment processing, employee benefits, your company’s loans, insurance, and others. Being able to find a reliable company that can do all those things will surely make your business management a lot easier.
As you may have noticed, outsourcing payroll services is not something that you may have to decide in just one sitting. Nevertheless, being able to find the right third party to cater to this type of task will guarantee you cost-effectiveness and will also make your business more manageable. Key things you need to take note of are:
- Ask the right questions
Benefits of Outsourcing Your Payroll Management:
Outsourcing, in general, can be a pretty unusual thing for some businesses that are not yet well versed when it comes to its practice. For businesses that are not yet fully aware of the benefits of payroll outsourcing, most questions will revolve around:
- What will you gain from outsourcing your payroll?
- Will it be worth your time and effort to research and identify an appropriate outsourcing service provider for your business?
Theoretically speaking, outsourcing, in general, gives your business the following advantages:
- It reduces costs and risks.
- It allows your business access to experts and the latest technologies to perform your payroll processes well.
- It frees up time and resources so you can focus more on your core business.
Payroll Outsourcing Services With PrimeOutsourcing
Prime Outsourcing offers a variety of outsourcing services. From digital marketing specialists to administrative staff up to payroll experts, we’ve got it all for you. Go to our services page and with several clicks, you can hire the staff you need for your business.