subject: Outsource Your Payroll Save Time And Money [print this page] For small businesses, processing payroll can be very time consuming. Often times these functions do not add direct business benefits when conducted in-house. Payroll processing includes any function ranging from determining employee wages and withholding taxes and updating vacation and sick pay to deducting employee contribution payments for benefits and making those payments on behalf of the employees and the company.
Payroll processing is often a complex and tedious function. Many businesses prefer to outsource their payroll work to an accountant or payroll processing company. Utilizing a payroll service such as those previously mentioned can minimize the small business owner's workload and ensure that his or her payroll calculations and records are properly and efficiently prepared and maintained. A payroll service will also enable the business owner to place more of his or her focus on core activities of the business, thus providing direct value to that business.
Generally speaking, using a payroll service can cost half of what it would cost to prepare payroll in-house. Retaining a payroll service also reduces the need for payroll staff. It will also eliminate the need for business owners to become a experts on topics such as FICA, unemployment taxes, benefits, health insurance, EEOC rules, overtime laws and a host of other material. Rules are continually changing and it can be extremely challenging to stay on top of all them while operating and managing a business as well.
More benefits include; Convenience: Businesses using payroll service providers simply email, telephone or fax their employees' hours, deductions and wage amounts and their payroll firms process the paychecks. Many services also allow employers to update employee payroll information via their websites.
Functionality: Many payroll processors also handle employee retirement plans and direct deposit of wages. A number of firms also provide management reports, calculate employee tax obligations and prepare W2 forms for their clients.
Accuracy: Payroll processing firms know that they must do accurate work in order to retain clients. You can count on them to stay up-to-date with all new tax laws related to payroll.
Compliance: The payroll function involves a complex array of state and federal legal obligations. Hiring a payroll company can save you money on legal fees and put compliance into the hands of businesses that understand these legal issues.
When choosing a payroll service you may search online or ask your accountant or banker. Be sure to choose a service which allows online payroll management.
This can save you time by allowing your employees to directly download their pay stub and statements such as W-2's at the end of the year. You can also tie this valuable information to an online portal for your employees.
