Benefits of Outsourcing Payroll
Payroll processing is an essential task in any ongoing business. It is a function that must be performed regularly and accurately while ensuring compliance with reporting and tax regulations. Given the complexities involved in payroll management, it is not surprising that this back-office task can take up so much time and resources. Many business owners have found that outsourcing payroll processing to a reliable third party provider is advantageous for various reasons.
Improving Operational Efficiencies
Contracting your payroll services to a credible third party will reduce the burden on your human resources department. Their time and efforts are better spent at recruiting the best talent, improving workplace safety or training employees. Using an automated timekeeping application, attendance records are updated in real time, and this data is forwarded to your payroll management provider based on a pre-arranged schedule. This ensures that payroll data is accurate and that employees’ wage totals are computed correctly. Wages are processed via direct deposit that employees can access through a Visa debit payroll card.
For smaller businesses where owners and staff perform multiple responsibilities, outsourcing means having more time and resources devoted to core business matters that relate directly to boosting income and profitability.
When you outsource payroll preparation, you may have to eliminate some positions and reassign others because fewer employees are needed to manage payroll preparation. This means reducing your own payroll expenses while improving productivity in other areas. You may also find that eliminating an entire section of your own human resources department will reduce your space requirements.
Better Data Access
Choose a payroll services provider that is fully automated, and you immediately improve access to information related to payroll, wages, benefits and taxes. Online payroll processing means that data upload and download are seamless on both sides. Time records, pay-related demographic information and wage balances are updated easily. Your authorized representatives can access the data and any reports summarizing and analyzing the information as needed. This also means employees can pull their own wage data when they need it to backup loan applications for instance.
However, even with automated payroll services, you should have live support when needed. Choose a provider whose support line goes to a representative instead of an 800 number, and you are assured of expert help as the need arises.
Compliance with Regulations
Preparing your payroll is no longer a simple matter of entering the right figures. This is especially true as your business expands and your payroll grows. Your payroll may include both W-2 and 1099 payees, complicating the process even more as different tax and labor regulations will apply. Non-compliance with tax deadlines can turn into larger problems that may include hefty penalties. When you outsource to a reliable provider, your company will have a payroll expert that specializes in your industry. These providers would be well-versed in the relevant regulations, deadlines and processes that apply in your case.
We are a family-owned and managed payroll services provider with headquarters in southeast Wisconsin. Specializing in payroll solutions customized to your needs, iPS has a 20-year record of accomplishment in providing payroll services to support your business growth.