If you work in payroll service, you know just how time consuming it can be. It is also possible to make a lot of errors if you don’t double check your work before submitting. Short of payroll outsourcing, payroll processing software can save you a lot of time and money!
Payroll process overview :
The three main parts of payroll service are calculating employee pay, determining and paying payroll taxes on that pay and recording payroll transactions. It is the employer’s responsibility to provide a timekeeping system to track the amount of hours an employee works each pay period. Also, sometimes with the help of a payroll service or payroll outsourcing, the person in charge of payroll will calculate and withhold federal income taxes, report all compensation, taxes and tips, and pay their employee’s social security and medicare contributions. There are two types of payroll services :
- In-House : Generally this type of payroll service is more utilized by smaller employers, as it is usually less expensive. However, in-house payroll service is prone to more errors and can cost more money in the long run. It is time consuming. It is possible to purchase software to streamline and speed up this process, although that can be a significant out of pocket cost at first. Some larger companies may even hire a full staff to manage payroll instead of using payroll outsourcing. Check here!
- Outsourced : Payroll outsourcing involves hiring a third-party to do all payroll services. All the employer has to do is send over their payroll information and the payroll service sorts through it, organizes it and sends it back for the employer to pay out to its employees. However, they only process the information given to them, even if that information is incorrect. This could lead to fines or penalties.
- Hybrid : Many companies elect for a system that is somewhere in the middle of in-house and outsourced. The payroll is often done in house and sent out to have the checks written and direct deposits. It can reduce both cost and time to the employer by splitting duties and time.
Top 8 Benefits of Third Party (or outsourced) payroll services :
- Outsourced payroll services free up your time!
- Outsourced payroll services lower costs!
- Outsourced payroll services allow you to worry less about IRS penalties!
- Outsourced payroll services alleviate pain!
- Outsourced payroll services offer direct deposits!
- Outsourced payroll services help you to avoid technology hassles!
- Outsourced payroll services help you leverage outside payroll expertise!
- Outsourced payroll services help you to leverage outside payroll knowledge!
Whether you choose to do your own payroll services or choose to use payroll outsourcing, knowing the benefits of both (or even a hybrid of the two) can help you to minimize time spent on doing payroll and maximize the money you’re making without worry about fees! Make sure you choose the right payroll outsourcing company (look for one with a good reputation and reviews from other companies that use or have used them in the past) and your job might go from a hassle to a breeze! Click here for further details: https://www.dpnaturecenter.org/bad-payroll-practices-to-run-far-away-from/