The payroll excites all employees, especially when they will receive their own near the 15th or 30th of the month. However, the process can be daunting and tedious to payroll administrators or business owners who do it by themselves. It will be easier to pass the responsibility to an expert that can do the job with speed and accuracy. Thus, some owners decide to outsource payroll services instead.
Here are five reasons why you should do to:
1. Save time and be productive
As a small or medium-sized business, having a payroll service in-house or doing the process on your own can cost the company time. The process itself is complex and lengthy that it would cost a lot of hours to finish. It starts with calculating the payroll for each period, printing, signing, distributing paychecks, maintaining the software, training, and support for the software, updating rules according to tax laws, and remitting payroll taxes to the government. If you pay for the number of hours your employee is working for less than 200 employees, the cost does not equate to the benefit. The company will lose money in paying for the time the in-house payroll administrator spent in the process while it is losing the opportunity to make the time more productive. Yet, when you outsource your payroll services, your payroll administrator can focus on other company financial needs.
While as the owner of the business doing the payroll process, you will be losing time you could have spent in other activities directly related to your company and its growth, like sales, marketing, and operations.
2. Save costs
Outsourcing payroll services can help the company save money. If you process payroll in-house or do it yourself, it will entail spending money on computer equipment, payroll software, and software training and support.
Also, if you pay your payroll administrator by the hour and the nature of the process is long, you will end up paying a higher salary for them. You will even pay for their sick, vacation, and maternity leaves or separation pay as your employee. Whereas, in outsourcing a payroll service, you will pay a fixed cost for the service tailored to your company without the necessary benefits of an employee.
3. Save the company from mistakes
The payroll process includes complying with laws, regulations, and mandatory rules of the country you are in. Thus, small business owners or payroll administrators must be updated on the new laws and regulations regarding payroll and understand these completely.
Although, some still make mistakes in creating their payrolls as they are not experts in the field. This can cost the company penalties and legal suits regarding payroll, especially that wrong deductions in an employee’s payroll can mean a lot to them. Although, when you outsource your payroll services, the company provider would be knowledgeable about the local, regional, and national laws and regulations concerning the industry you are in and payroll services.
4. Save your data though increased security
The payroll process would require company, client, and employee personal information that can be used for identity theft, tampering, and embezzlement. This can occur with a tempted payroll administrator or a hacked software.
With outsourced payroll services, they have access to trusted and updated cloud-based systems and software applications to prevent viruses and information leaks because this is the service they provide to their clients. It is part of their process to have monthly detection, backup locations, antivirus software, and client data encryption.
The payroll excites all employees, especially when they will receive their own near the 15th or 30th of the month. However, the process can be daunting and tedious to payroll administrators or business owners who do it by themselves. It will be easier to pass the responsibility to an expert that can do the job with speed and accuracy. Thus, some owners decide to outsource payroll services instead.
Here are five reasons why you should do to:
1. Save time and be productive
As a small or medium-sized business, having a payroll service in-house or doing the process on your own can cost the company time. The process itself is complex and lengthy that it would cost a lot of hours to finish. It starts with calculating the payroll for each period, printing, signing, distributing paychecks, maintaining the software, training, and support for the software, updating rules according to tax laws, and remitting payroll taxes to the government. If you pay for the number of hours your employee is working for less than 200 employees, the cost does not equate to the benefit. The company will lose money in paying for the time the in-house payroll administrator spent in the process while it is losing the opportunity to make the time more productive. Yet, when you outsource your payroll services, your payroll administrator can focus on other company financial needs.
While as the owner of the business doing the payroll process, you will be losing time you could have spent in other activities directly related to your company and its growth, like sales, marketing, and operations.
2. Save costs
Outsourcing payroll services can help the company save money. If you process payroll in-house or do it yourself, it will entail spending money on computer equipment, payroll software, and software training and support.
Also, if you pay your payroll administrator by the hour and the nature of the process is long, you will end up paying a higher salary for them. You will even pay for their sick, vacation, and maternity leaves or separation pay as your employee. Whereas, in outsourcing a payroll service, you will pay a fixed cost for the service tailored to your company without the necessary benefits of an employee.
3. Save the company from mistakes
The payroll process includes complying with laws, regulations, and mandatory rules of the country you are in. Thus, small business owners or payroll administrators must be updated on the new laws and regulations regarding payroll and understand these completely.
Although, some still make mistakes in creating their payrolls as they are not experts in the field. This can cost the company penalties and legal suits regarding payroll, especially that wrong deductions in an employee’s payroll can mean a lot to them. Although, when you outsource your payroll services, the company provider would be knowledgeable about the local, regional, and national laws and regulations concerning the industry you are in and payroll services.
4. Save your data though increased security
The payroll process would require company, client, and employee personal information that can be used for identity theft, tampering, and embezzlement. This can occur with a tempted payroll administrator or a hacked software.
With outsourced payroll services, they have access to trusted and updated cloud-based systems and software applications to prevent viruses and information leaks because this is the service they provide to their clients. It is part of their process to have monthly detection, backup locations, antivirus software, and client data encryption.
Need help in your payroll services? Contact us through info@greenpointconsultancy.com.
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