Payroll is one of the most, if not the most, important factor in running a business. If your payroll fails, your employee morale could fade leaving your business in disarray. Let’s face it, your employees are the heart of your business and if they aren’t getting paid on time, they aren’t likely to be happy or focused on their jobs. Many smart, small- and medium-size, business managers take the stress out of doing payroll and let payroll processing services run on autopilot for them. Let’s take a look at the benefits of outsourcing your payroll and what you should look for when deciding on a payroll processing service.
How does outsourcing payroll work?
Autopilot. Doesn’t that sound amazing? Outsourcing your business’s payroll processing allows you to automatically complete all of the time-consuming, confusing, and risky tasks involved. This gives you the extra time you need to focus on other aspects of your business, such as marketing, hiring, or evolving your product.
Payroll accounting, the monotonous and tricky record-keeping component, is also taken care of with a quality payroll service. These services calculate deductions for federal, state, and Medicaid taxes, IRA and 401(k) contributions and other deductions, then payment is submitted via direct deposit to your employees. Having these deductions done for you in payroll services can save staff costs by cutting the need for a payroll administrator. More importantly, they can help you avoid costly IRS fines for calculating or recording the taxes improperly!*
Some of the best payroll services will even take your payroll data and provide reports over time, giving you insight into your personnel trends and issues.
What should I look out for when outsourcing?
When outsourcing payroll, the first thing you want to look at is cost. If it costs you more to outsource than to do it in-house, then you should decide if the savings in time, energy, and reduced risk are worth the extra cost. The second thing you need to look at is the quality of the product. Ask for demos and free trials to see if the payroll service you’re considering is right for you. It doesn’t hurt to explore multiple payroll products before settling on your final choice.
You also need to make sure you look for the service-level agreements. Most importantly, confirm your payroll processing service is keeping your information confidential.
Should I outsource human resources along with payroll?
Payroll processing services are becoming very robust. Big-name payroll services are starting to house everything you’d typically need in an HR department, including: hiring tools, time attendance tools, onboarding, and more! Employee dashboards let your employees access features like paystubs, benefits, time off, and more. So, if you’re looking for a Human Resource department, all of that can be outsourced (or at the very least, streamlined) through many payroll services. Check the cost and make sure you will be saving by outsourcing – it could potentially save your business a lot of money to outsource both Payroll and HR!
There are many options when it comes to outsourcing payroll. The key is to find the product that addresses your business’s specific needs. Take your time and find the right solution. If you make the right choice, you could potentially be putting more money in your pocket and freeing up time to focus on those facets of your business that made you successful in the first place.
Interested in finding our more about Payroll Processing Services? Go to services.officedepot.com to learn more about our payroll and HR solutions and if they’re the right fit for your company’s needs.
*The contents of this paragraph are for informational purposes only. The information should not be relied upon as replacement for professional tax advice.
Bill Wade is a serial entrepreneur who has founded or co-founded over 25 companies since 1989. Bill thrives on the success of others and started Company.com with businesses in mind. Company.com ranked #10 in the Business Products and Services category in the Inc.5000 for 2015.
All content provided herein is for educational purposes only. It is provided “as is” and neither the author nor Office Depot, Inc. warrant the accuracy of the information provided, nor do they assume any responsibility for errors, omissions or contrary interpretation of the subject matter herein.
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