Once you work out how much it costs to manage your payroll in house, you have to ask yourself; is it more beneficial to outsource to a payroll services company?
Few managers or owners of a business will say that managing their payroll is one of their favourite tasks. From a financial and time perspective, is it more beneficial to outsource to a payroll services company? Detailed below is a quick look at the positive aspects of why companies turn to a payroll services company.
The cost of payroll.
Large companies have the finances to maintain large payroll departments. On the other hand a smaller business employing in house payroll can be a financial burden. There is a very good chance that a company could save money on their payroll if they have 20 employees or less. Do an analysis; calculate how many hours employees spend on payroll related activities, to the services offered by payroll services companies (remember to compare the cost of several). Make sure that you don't forget to factor in the cost of stationary, printing, training, tax documentation, distribution. Many companies when analysing their cost are quite shocked at how much time and money is spent on payroll.
Time spent on payroll
Payroll management can be extremely time consuming. With this task removed, you and your employees can focus on being more productive on the key area of the business, you may even be able to save money by down sizing.
It is so important that payroll is accurate.
Mistakes with payroll can be hell, dis-gruntled employees and more importantly the government. In house staff are more likely to make a serious mistake than a professional payroll company. A good company will have a service level agreement that guarantees their accuracy, you can't have that benefit with an employee.
With a payroll company you will not have the added pressure of covering illness and holidays, you will also not have the added cost of hiring and training new people.
Professional payroll companies are specialists within their field and use high tech resources, even the most complex payroll can be completed with speed. vast technical resources at their disposal, they can process even the most complex payrolls.
A payroll provider be upto date with payroll related tax laws and government requirements. Investment into training employees on a regular basis could mean high investment and loss of more time.
Payroll Services are accountable
A provider is responsible for rectifying any errors - if anyones pay is delayed or the paperwork is handled wrong. It is very easy to change your provider and takes very little time — check your contract to make sure that you are not in a time contract. Training, firing or hiring staff in house payroll employees can take upto several weeks.
It is very time consuming to closely monitor company payroll however, is needed to make sure that security is not being breached. Professional payroll services companies will have the technology to highlight and alert companies when payroll fraud is in action.
Peace of mind
No more dreading that time of month when payroll creates headaches and lots of hassles. Outsourcing payroll leaves you to focus on the main purpose of the business and giving you the peace of mind that your payroll is being handled correctly.
Advanced Payroll Services, professional payroll services provider.