Payroll Outsourcing Services: It’s Not As Difficult As You Think
6 Incredible Reasons Why Payroll Outsourcing Services Are Beneficial
Whether you have one employee or hundreds, you cannot afford to make mistakes when it comes to payroll. Just a couple of mistakes can also have disastrous effects on your workforce. Add to this the ever-present threat of tax penalties from late or faulty filings, and you have a real reason to make sure your payroll is functioning as nicely as possible. Payroll outsourcing services help companies at every scale to achieve this objective affordably and reliably.
However, some managers still balk at the idea of outsourcing such an essential business process. Some express concerns over issues involving data privacy and a perceived lack of control over payments. Yet, others might point to the added expense of drafting in a third-party payroll provider. But with at least 39% of U.S. companies already outsourcing their remunerations and tax filings to payroll outsourcing services, these fears don’t seem to be borne out by reality. Here’s why organizations from all over the country are turning to payroll outsourcing.
Market research shows that not by handing over basic business services, you are throwing money away. Up to 20% actually, or at least according to one study. Time and attendance, check processing, workforce administration, and benefits are just a few of these basic tasks. Every payroll period requires the absolute attention of your team, as they sift through reams of data. You need to calculate and disburse accurate payroll taxes, garnishments, and even other employee-specific payments. Making matters worse, these tasks will only continue to become more complex as your workforce grows. From sick leaves, benefits and overtime payments made to full-time staff members, your cost continues to increase. Consider taking these things off of your plate. Let us focus on you. Only then can you focus and dedicate your staff towards real revenue-building activities.
Every year, 40% of small businesses are fined a minimum of $850 due to overdue or inaccurately filed payroll taxes. Amidst daily changes to Federal and State-level tax codes, maintaining compliance is a tall order. Not to mention, there is also always the threat of possible future IRS audits. Certainly, this is a threat that any business owner would seek to avoid. Wouldn’t you want to avoid penalties that have a significant impact on your bottom line? Ultimately, though the duty for any these mistakes falls at your feet. So, unless you have an expert tax accountant on-call you’re better off outsourcing. Leave the complex tasks for payroll outsourcing services such as A2ZVA.
Payroll providers like us equipped with state-of-the-art accounting software. This allows us to stay on top of all legal and regulatory changes with the utmost ease. As a result, you can ensure your company remains compliant, with accurate tax filings every year. Think of the below, and see how we can assist with your payroll outsourcing services can.
- Employee withholdings
- Federal Taxes on unemployment.
- Quarterly and annual tax returns.
- Social Security payments.
- State payroll taxes.
- Overtime and PTO.
There is a persistent risk of fraud or theft wherever financial data is involved. Furthermore, the majority of these incidents are carried out by junior to mid-level staff. But these issues can be largely minimized by a payroll processing service. First, we secure all data in a remote facility that is inaccessible to any on-site employees. Well, that is unless we provide the proper approval of course. Ensuring that your sensitive payroll information is restricted should always be of extreme importance. Secondly, needs to be secured and encrypted, thereby protecting from third-party monitoring or possible cyber attacks.
Also, data must be backed up on a consistent basis, so your payroll records can be kept intact. Therefore, you and ready for processing even when hardware failures occur. Implementing this sort of data security in-house would require a significant up-front investment in infrastructure. We include these services as part of our standard SLA.
At the end of the day, an effective payroll function is about getting your employees the correct wages at the right time every month. When you fail to accomplish these basic tasks, you can give off a relaxed image that can be extremely upsetting for both you and your company for the best talent in your organization. Using payroll processing services ensures you pay your employees accurately and promptly.
These providers also offer a range of other services that can make life more convenient for your employees including direct deposits and electronic fund transfers, viewable online payroll records, and online check stubs.
Alongside basic processing services, payroll providers also provide reports and analyses that can help you manage and control your business more effectively. These reports can cover key areas such as
- Employee earnings are broken down by individuals, departments, and locations. Payroll reports will help you understand how much you’re paying in overtime and PTO every year so that you can track the productivity and overall efficiency of your workforce.
- Annual payroll summaries. These reports indicate how much working capital is required to cover payroll expenses over a given period.
- Adjustment reports. These reports display all payroll deductions and reimbursement due to each employee. Reporting can be broken down on an annual or per-period basis.
- Payroll outsourcing services can keep you apprised of hiring timelines for recruits, so you don’t have to pay underachieving employees unemployment benefits in case of termination. Reporting tools can also help you track and verify unemployment claims based on existing payroll records.
As your business grows and your payroll processing requirements become more complex, there will be ever-greater demands placed on your in-house staff. Inevitably you will need to hire more payroll specialists or invest in new time tracking and reporting software to keep up with the workload. Payroll outsourcing services can offer the same functionality regardless of the size or complexity of your organization.