More companies than ever are boasting outsourced payroll, and enjoying the benefits of efficiency and peace of mind because of it. That said, there are still a lot of people on the fence due to a couple of unanswered questions. Outsourcing payroll is a big decision and one that can dramatically change the way you do business for the better, and that means it's certainly worth the research. Luckily, we can answer your most burning questions right now.
For those who don't know, companies who have outsourced payroll have effectively partnered with a third-party to handle the aspects of human resources and payroll they no longer have the time, resources, or expertise to handle in-house. Because HR and payroll are highly expensive aspects of doing business, it's no wonder so many people are searching for an alternative.
With outsourced payroll, a simple monthly price gets you a team of experts to handle everything—remittances and taxes, regular payroll and deductions, legal compliance, vacation, holiday pay, and more. For businesses that can't afford a large payroll department, it's an ideal solution. They make use of the best in business without the bank-breaking price tag of an entire in-house department.
The Nuts and Bolts
So how does it work, exactly? It's a common question and one of the most important. Before you can begin to deal with outsourced payroll, you'll need to research and choose the right payroll company for you. You'll want to find a company that understands legal compliance for not just your specialization, but for your whole industry as well—and you'll want to find one that cares about your nuanced individual needs. Understandably, plans should fit your business, not the other way around. Be sure to find out if there are any hidden fees associated with the outsourced payroll services you’re looking in to—a good payroll company will not tack on any extras without you knowing about it.
Once you've found the right group, you'll be sent a payroll report. This is a report detailing the things you've laid out, like the pay cycle you'll be working on, policies on vacation pay and benefits, and so on. The report needs to be approved before anything else can get started. Because people who specialize in outsourced payroll also deal with tax remittances (for both your employees and your company as a whole), they'll need to know about these remittances as well in order to comply with the law. This means in addition to payroll, you don't need to worry about your annual taxes either—the professionals are on it!
With all the complications-related to payroll, it's no wonder so many people turn to payroll service providers in the end—everything (and we mean everything) is taken care of off-site, allowing your workers and your company to focus on core operations and goal-oriented activities instead of paperwork laden peripherals. While you focus on increasing your production and profit, you'll receive one simple invoice at an interval set by you, breaking down all costs and operations in one single step.
Perhaps the most attractive aspect of outsourced payroll is the money saved—instead of paying several full-time employees to manage details, you pay a single fee for a large team who will dedicate themselves to your flawless payroll work. This also means you can divert your staff away from side activities to bring their expertise into action, focusing directly on your company's future.
It's also an incredible time-saver! Payroll and human resources take up a great deal of time and can become inefficient, no matter how hard your staff tries. When it's outsourced, it becomes dramatically simpler and just a matter of reviewing the schedule you set to ensure everything is done correctly and on time.
Consult with a PEO today and see just how much they can do for you.