Top 8 Payroll Outsourcing Services for Small Business
In any company, payroll is next in importance as the ability of the company to generate sustaining revenues. The formal definition of payroll includes much more than generating paychecks to employees. Payroll is the sum of all the salaries, wages (including standard wages and commissions), bonuses, and deductions. Payroll includes various instruments with the most common being the paycheck, usually a paper instrument issued by employers to employees of monies disbursed over a given pay period either weekly, bi-weekly, or monthly.
It used to be common for an employee to receive a paper check but with the advent of technology most company’s pay their employees electronically by direct deposit (the money goes directly into the employees bank account). This saves time and money. In addition to paychecks there are other instruments available but frequently not used with the exception of one- pay slips that give the employee a hard copy record of the payroll transaction. The other payroll instruments are warrants (issued by governmental agencies similar to a paycheck), and payroll cards (if the employee does not have access to a bank account).
The effect payroll has on a company greatly impacts the net income (revenue the company generates in a given fiscal period less all expenses incurred during that period). This effect is the result of the amount of pay the employees receive less all the payroll taxes and withholdings subject to state and federal regulations.
Payroll must be timely, accurate, and absolutely free of errors. The cost of fixing mistakes takes away from the company’s bottom line (the profit of the company). Most large corporations have payroll departments to handle their payroll needs however, this can be costly and many times cause the company more problems and time in having to correct errors especially if the company has a large payroll. New payroll laws and regulations can also be a hindrance keeping up with the latest changes.
Read More: Top 10 Payroll Software In Malaysia
It can be advantageous for a company to consider to outsource their payroll and the reasons for doing so far outweigh the cost of having a separate payroll department. The most obvious advantage when a company is considering outsourcing is cost. By using a payroll service, the company eliminates the need of having a separate payroll department and the time and expense of hiring and training personnel and the cost of buying and maintaining payroll software, supplies, and other resources needed. The complexity of figuring deductions is eliminated and the margin for error reduced. Changes in payroll laws are the responsibility of the payroll service and no longer the company’s. Reports are generated and provided the company by the payroll service thereby eliminating additional paperwork. All paychecks and electronic deposits are handled by the payroll service. The company pays the service a flat fee for providing the entire payroll function.
When a company uses an outsourced payroll service, it frees them to focus on more important tasks such as: accomplishing the mission objectives of the operation, giving the company more time to gain competitive advantage over the competition, keep costs within or below budgetary goals and restrictions, and run the operation more efficiently.
Online payroll outsourcing provides the ability for a company or organization to have payroll information available to them instantly. Immediately the paychecks can be printed with all deductions and taxes calculated correctly and the entire payroll process streamlined to meet the needs of the company. The greatest advantages of this type of service are the convenient access available and constant customer support whenever needed. By using an outside service, company’s can avoid penalties imposed by payroll errors by not paying taxes on time. This is a major advantage because payroll errors can be costly. In addition, if the company has employee’s in different states or overseas locations, the time and costs of keeping up with different state and international laws can be a nightmare. By using an outside service this can be eliminated.
While this kind of service is very beneficial to company’s large and small there are some disadvantages to using this system. The outside service will have access to all the company’s employees including banking and antecedent information and company credit information. It is critical for the company to perform due diligence before deciding on an outside service. There are many services available but not all are reputable.
When a company considers a service to handle their payroll there are some things to consider and questions to ask. How accessible and available is support when needed? How flexible is the service in having the ability to print checks and handle direct deposits? Are there any hidden costs or charges for using the service not specified in the fine print? Does this service meet the needs of the company? Are the employees of the service knowledgeable and current with changing state and federal regulations and tax laws? One additional key in choosing a service is are they timely in providing the service. It always a good idea to get feedback from other company’s and organizations who have used the service. There is no inappropriateness in asking for references upfront before signing any agreement.
The types of services available to company’s and organizations are varied from the traditional accounting service to the online service. Both types get the job done, but for those company’s needing instant access to their payroll, the best type of service is the online one.
To outsource or not depends on the company, but there is a litmus test that can help a company decide if outsourcing is right or not. Take the entire cost of processing payroll in-house and compare that cost with using an outside agency. If the cost is more in-house then it would be advantageous to consider outsourcing.
To summarize, outsourcing is an excellent way for a company or organization to eliminate the cost, margin for error, and burden of doing payroll in-house. There are better more efficient timely ways of doing payroll. One of the best uses technology giving the company instant access to their payroll anytime with a streamlined system and quick support. When choosing an outside source, the company should investigate the service thoroughly before deciding keeping in mind their needs, costs ,and what the service provides.
Top 8 Payroll Outsourcing Services for Small Business:
We provide outsourcing for all payroll related services in full compliance with Russian labor laws. Since 1992. We employ over 200 professionals. Contact us!
We provide industry-tailored HR solutions & administration services. We offer fully customizable solutions to fit your business needs. Get in touch today.
Alp Consulting is leading Payroll services provider India to outsource HR payroll process. Our statutory compliance service to help small medium large business companies to outsourcing or manage their employee online payroll software system.
Accurate and ontime Employee payroll & complying with statutory laws are crucial to running a successful business. Quick & Easy access to accurate data points can help you gain insights into your workforce and help you make adjustments to align them to your business goals.
Payroll Outsourcing India – Brooks Consultant is one of the top payroll outsourcing companies and payroll service providers in India and offers online payroll services.
Our reliable and flexible payroll program offers comprehensive information on personal and salary details for the employees of a business
We are Pune based Payroll Outsourcing Company; specialize in payroll management, online web Payroll system, Accounting, Statutory, HR, and Employee Leave Attendance.
Compare payroll outsourcing from managed, hosted and pay-as-you-go UK services and receive bespoke quotes for your business.