April 23, 2008

Outsourcing Your Payroll Processing

A Great Way To Save Valuable Time And Money

Outsourcing your payroll is one of the most used solutions to companies that are looking for an economical payroll solution. The basic concept is that by utilizing a payroll processing company you are using an expert group of payroll professionals to manage your company payroll needs. Accuracy and reliability are the minimum requirements of a payroll processing organization.

Outsourcing your payroll will allow companies the opportunity to concentrate on developing other departments and concentrate on marketing and product development. By relieving companies the burden of having to staff an in-house payroll department and the expense software that is required to maintain their records.

Outsourcing your payroll to a reliable, professional company will ensure timely employee checks and deposits of federal payroll taxes. Managing and processing payroll includes, court required payments, pension contributions, employee record management and accurate payroll reports. In addition, most processing company's mange the timely filing of your payroll tax obligations to the IRS for federal payroll reporting, by keeping track of deadlines and constantly changing laws and reporting requirements.

Proper communication and set with the service company will avoid confusion from the start and throughout their service time. Most payroll processing services are flexible and easily integrate themselves into your business easily. Utilizing an outsourced payroll processing service allows a number of options that would otherwise not be available to your employees, such as payroll debit cards, online reporting and the ability to store and maintain their paycheck stubs.

Many payroll processing services use custom software that is capable of generating payroll checks, reports processing taxes, calculating deductions as soon as the payroll is entered into their system. Payroll taxes are deposited into the appropriate accounts right away, so you will not have to worry about them getting paid on time and will avoid costly penalties and possible fines.

With the advancements in technology and the internet, several companies have begun to offer online processing of payroll. A web-based system allows users to securely and accurately process their payroll and print reports and paychecks in there our office.

Processing your payroll using an online portal provides a great deal of flexibility for the employer. You can maintain your employee records online, manage your payroll taxes, monitor your expenses and even print checks right from your own computer. All without additional software to purchase processing your payroll online makes great business sense.

When it comes to outsourcing your payroll, by either utilizing a company online or not, there is a good possibility that you will save a lot of time not to mention money. Money that is better on the bottom line.

Article source: Article Cafe by Thomas Bladecki

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3 comments:

  1. Great blog regarding outsourcing payroll services. This is a profitable option as companies will be able to concentrate better on the other aspects of their business and save time and money. Thank you for explaining the advantages of outsourcing this service.

    ReplyDelete
  2. Anonymous9:50 AM

    Four Smart Reasons to Outsource Payroll
    - Free Up Time By Hiring Professionals

    If your company is focused on generating higher profits, you may think it makes economic sense to do as much as possible in-house. But take a look at four smart reasons to outsource payroll:

    1. Save time - Getting payroll calculated, processed, and distributed takes countless hours. Computer glitches, power outages, time off the job, and other unforeseen problems can make it take even longer. Your time and resources can be better used doing what you do best.

    By leaving payroll to the experts, you can spend more time paying attention to your customers and clients. Payroll professionals are prepared for emergencies and can get checks out when you need them.

    2. Reduce liability - Not only is calculating state, federal, and local payroll taxes time-consuming, if a mistake is made, you may be looking at penalties and interest on top of your regular tax burden. The IRS and state tax authorities take payroll taxes seriously.

    Handling payroll involves making accurate and timely payroll deposits, as well as filing numerous reports throughout the year. Missing a deadline or miscalculating amounts can be costly. The IRS estimates that 40 percent of businesses end up owing payroll tax penalties every year, at an average of around $845 per employer.

    Payroll service providers are experts in their field and can calculate your company's taxes and tax deposits accurately. It makes sense to leave payroll to the experts so you can pay more attention to your customers and clients.

    3. Worry less about complexity - Mistakes can happen, no matter what the size of your company's payroll. This is especially true when paychecks are just one of many tasks you're trying to juggle. Yet, if you handle payroll in-house, you must stay on top of changes in tax laws, withholding, reporting, and overtime rules.

    Payroll service professionals make it their business to know when the tax laws and rules change and how those changes affect your company.

    4. Save money - If you think you can’t afford to outsource payroll, you may not be counting all the costs of doing it in-house. How much is an hour of your time worth? How much time do you spend keeping up with payroll regulation changes, handling payroll, making periodic deposits and filing reports including W-2s and 1099s? In addition to the cost of your time, there are computer, printer and check stock costs.

    Add up how much it realistically costs to handle payroll in-house. Then call Susan Evans at USA Payroll, 585.427.2010 for a quote.
    Providing payroll solutions that make sense, we guarantee you'll be pleasantly surprised at how affordable outsourcing really is.

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  3. My wife owns a small retail business and I who heartedly agree with the comments you have made above.

    I am an accountant by profession and have found for the cost of outsourcing the payroll is so minimal it's a no brainier for a small shop like ours.

    ReplyDelete