Payroll is a company’s list of its employees. It usually refers to;
- Total amount of money paid by the company to its employees.
- The company’s records of all employees, their total salaries, wages, bonuses, increments and withheld taxes.
- And the company’s department that calculates and pays the salaries and other amounts.
Processing payrolls can be a complex and time consuming task. For most of the companies, it is a tedious, irritating and no-fun experience. From calculating employee salaries, wages, superannuation and withholding taxes to updating vacation, sick pay and other payments to employees, and from preparing timesheets to pay slip preparation, payroll services is a time consuming task. Many businesses can use an outsource service like ADP or Paychex if they find payroll processing complicated.
Following is the list of payroll services that an outsource payroll service company or firm usually provides;
- Preparation of pay slips
- Payment of salaries
- Accrual of all types of leave
- Calculation and payment of superannuation
- Comprehensive payroll reporting
- Preparation of payroll tax lodgments
Outsourcing your companies’ payroll services a lot of complex work done with ease and plainness. It is a non core function best left to the outsource payroll services and companies. It lets you enjoy the following benefits;
- Time Saved: It frees up your staff time so they can pursue more important profit generating and value adding business activities. The staff needs not be entangled with tedious data collection, processing and reporting of payroll matters to the company.
- Money Saved: All businesses need to employee a full-time payroll manager. Therefore the direct cost of processing payroll is much high which can be greatly reduced by working with a professional payroll service provider. More explained here.
- The Expertise of Professionals: Hiring a professional outsourcing payroll service provides the hiring companies instant suggestions on potential problems and complexity. They also provide them an accurate job. The companies can also count on them to stay up-to-date with relevant new laws like tax deduction laws.
- Avoid Technology Headaches: Manual payroll service in the best case is a headache and a nightmare in the worst scenario. Furthermore, a constant question for small businesses is whether they are using the latest payroll software and tax tables or not. Outsourcing payrolls removes all of these headaches and keeps your payroll running smoothly.
- Avoid IRS Penalties: IRS means Internal Revenue Services. According to IRS around 40% of small businesses bear an average penalty of $845 annually for late or incorrect filings and payments. Most of the outsource payroll services provide a tax guarantee, thus they ensure that the businesses will incur no penalties as the providers take responsibility for them when they do occur. This cost and position saving immediately justifies outsourcing payroll.
Other advantages include convenience, accuracy, functionality, compliance and others. It is recommendable to get at least three quotations before getting started with an outsource payroll service. So, you can opt for the best option for your business.
Read more in our featured post here: http://esnorg.org/8-benefits-of-outsourcing-payroll/