Benefits Of Outsourcing Your Payroll Processing
What is Payroll Outsourcing
What is Payroll Outsourcing
Payroll outsourcing involves contracting with a expert service to handle all functions related to a business payroll. It makes it possible to manage the payroll process without the need to maintain a large payroll department. Payroll service providers manage such diverse functions as the calculation of wages and salary, withholding of taxes, the distribution of withheld funds to the proper government agencies, the payment of superannuation and other benefits and allowances and the direct deposit of net pay into the bank accounts of employees.
The payroll outsourcing providers ensures that your payroll processing function is in line with the payroll standards and norms and is compliant with the local legislative requirements.
Why Would You do it?
Utilizing payroll outsourcing services enables you to tap straight into tried and tested processes and to reduce your costs of payroll administration.
In a nutshell it helps employers reduce their real labor overheads, and to take informed workforce decisions. These outsourcing solutions integrate payroll processing, payroll tax lodgment, HR information management, benefits, time & attendance management, & much more.
Taxes & Compliance
The Federal government under legislation and awards all have requirements that must be strictly adhered to, including the collection and remittance of taxes, payment of superannuation, payment of benefits in accordance with tax legislation and salary packaging and the payment of gross salaries and conditions.
Confidentiality
The confidentiality feature of cutting-edge payroll processing systems away from the normal business, allows the business owner to delegate the payroll responsibilities to an Outsourcing Service provider without worrying, that the employees personal information will become common knowledge amongst other managers and employees. The business owner no longer has the payroll cycle control their schedule in order to ensure the confidentiality of the payroll information.
Cost Reduction
By using outside resources, the business can enjoy the benefits of an entire payroll department for a fraction of the cost. The processing company gives the business owner the financial reports and information they needs to manage the business, in an accurate and timely fashion.
Convenience
By using outside experts to do payroll processing, the business owner gets the convenience and peace of mind that once required hours of report generation, and the payroll processing company takes care of everything else. All of the vital payroll information, reports, and checks are sent next day email delivery. The top level payroll processing firms also have the added convenience of providing integrated 1. employee benefit management, 2. ledgers, 3. time clock systems and 4. Employee database establishment, maintenance and contracting.
Benefits of Payroll Outsourcing
Save Time
Outsourcing payroll is more efficient for a business than processing payroll internally. Leaving payroll processing to experts frees up hours that can be devoted to other important aspects of the business. This time saving can be utilized in winning more business, improving customer service, fine-tuning business operations or launching a new product line. Some areas where outsourcing will save time are processing payroll, calculating & paying employment taxes, and transacting with employees banks and much more.
Generate Cost Efficiency
Many times employers underrate the cost of processing payroll internally by failing to account for all the hours spent and resources allocated to pay employees and maintain payroll paperwork. A thorough cost assessment usually proves that a small business saves money by outsourcing payroll processing, tracking and filing of payroll documents.
Streamlines Payroll Processing
Outsourcing payroll offers increased functionality as many outsourcing payroll companies also handle employee superannuation contributions, direct deposits, leave administration & other management functions. A number of them provide management reports, calculate employee tax obligations and prepare Payment Summaries.
Increases Accuracy
Their accuracy in performing payroll-processing functions helps employers to streamline their strategic business operations with human resource policies.
Ensures Compliance & Avoids Penalties
Payroll service companies calculate federal and state employment taxes for the employers. They even file payroll-related tax paperwork. Performing this tax evaluation work correctly, ensures employers avoid penalties and interest on money owed if a mistake was to be made.
Fewer Technology Headaches
As all the technical nitty-gritty is handled by the payroll outsourcing provider, you no longer have to worry about training to achieve knowledge on the latest technical know-hows for your businesses or payroll processing functions or to make expensive capital purchases.
Increased Core Business Focus
An employer can better focus on core business functions rather than non-core ones by using an independent outsourcing payroll service provider to give them more time.
Increased Confidentiality in Business Operations
The risk associated with exposing confidential payroll & HR information to employees familiar with the staff member is reduced.
Increased Administration Flexibility
You will also have access to a greater number of services.
by: Kristen Stewart
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