Payroll outsourcing services are one of the HR outsourcing services offered by professional employer organizations or PEOs. Preparing payrolls requires all the effort and resources of companies. Small and medium-sized businesses could outsource their tasks to PEOs to lessen their burden. When you outsource your payroll services, you get to save time and money.
Here are the top five reasons to find benefits in outsourcing payroll in 2017:
The expertise of professionals
PEOs are made up of experts in various disciplines. When it comes to processing payrolls, there’s no one you could rely on better than a PEO. While the PEO staff processes payrolls, your staff is left with enough time and resources to concentrate on the important profit-generating tasks of your business. The resources and time could be utilized for improving your customer care, winning more clients, streamlining business operations, and increasing production.
All these tasks would have a direct bearing on the earnings of your company. Payroll outsourcing services would save time especially in the area of processing payroll, paycheck distribution, calculation of employment taxes, preparation and distribution of W-2s, employee payroll inquiries, and more.
The biggest gains for a company from payroll outsourcing are the monetary savings. Companies performing a cost assessment could realize the monetary gains they achieve by outsourcing the processing, tracking and filing of payroll documents.
First, you can reduce the number of people working in various stages of payroll processing.
Secondly, with an external source handling the entire payroll responsibilities you can cut the staff carrying out these tasks or relocate the employees to other profit-generating departments of your company.
Think of the time required for each of the following:
- Calculating payroll services each time period
- Printing, signing, and distributing paychecks or pay stubs
- Generating reports for in-house and accountant use
- Preparing and remitting payroll taxes and returns to government agencies
Whatever be the way you look at handling them, payroll outsourcing services offer great benefits in saving time and money, and streamlining the overall operations of your company.
Removing Non-Core Activity:
If you are running payroll service then creating an accounting team doesn’t present a problem for you. However, if this isn’t your core business, the real and intangible costs of creating and managing such a team or individual takes time and focus away from your core…money making…functions.
Reduce People Management Issues:
Advertising/recruiting, interviewing, hiring, training and managing an in-house employee or team takes time and money. Payroll Outsourcing removes these issues and you don’t have to worry about staff turnover. Losing a trained team member can impact the effectiveness of your entire accounting function. By outsourcing, you won’t encounter this problem or incur the cost of retraining.
Working With Specialist:
For some small businesses (contractors, property management companies, grant funded non-profit organizations, etc), their industry requires some specialized compliance. Partnering with an outsourcing firm that caters to your industry is key. Since they may work exclusively with businesses like your own, they are aware of the constant changes in the tax code & accounting policies that apply to your specialized circumstances.
Need help choosing an outsourcing provider? We’re happy to help…even if you don’t choose us! payrollserviceaustralia.com.au