peace of mind !!!
If you do not want to handle mind-numbing things that are related to payroll, you can decide to go out and give payroll outsourcing a shot.
What is Payroll Outsourcing?
Payroll outsourcing is the act of delegating payroll administrative activates to a third party located in or out of your business jurisdiction. In general, companies outsource their payroll functions to reduce operating cost and improve productivity. Companies can concentrate on core business activities with more time available with a sensitive job off their responsibility.
Why Outsource Payroll Processing?
When you were just starting out with your business, everything seems to be very simple. You only concentrate on the core business activities. But as your business grows, things may get more complicated. Instead of being able to focus on the main business, you become more swamped with other aspects of the business which can be considered as non-core functions, time consuming and sometimes irrelevant. One of these is the payroll.
Payrolls, even for the experienced business proprietors, dealing with payrolls can be a tasking job. Keeping track of payroll changes and regulations in withholding tables and calculating amounts can be a time consuming and tedious job. Doing the payroll while working with the business core activities, may sometimes easily lead to mistakes. Another vital function in preparing payrolls is statutory compliances.
For small, midsized and starting out companies, it is not unusual for owners to spend two to eight hours preparing the payroll this is if it is done manually. Mistakes are also uncommon given the fact that you are multi-tasking. The consequences of these mistakes are expensive. An employee receiving pay slips with errors will result to decrease morale of employee, and may hold grudges against the management.
Mistakes in payrolls will not only affect your employees but it can greatly affect the whole business. When you file required returns late or with errors, you will be asked to pay for a penalty. Keeping erroneous errors will result to fines that can lead to exorbitant amount.
Major benefits when your payroll process is outsourced :
- Just like with any kind of outsourcing, payroll outsourcing can also save a company from wasting time and money. You can save money since you do not have to change your infrastructure, hire new people and train them. Having new people with not that much experience is prone to committing mistakes.
- It allows staff to focus on core business instead of taking a lot of time and effort on payroll.
- It makes compliance with tax rules and government regulations easier and more effective.
- There is no need to keep up to date with complex changing legislation by your payroll staff.
- Reduce cost as payroll service provider has scale efficiencies.
So payroll outsourcing has become a very common choice for a small or medium sized business. What a business normally does is provide payroll changes to payroll outsourcing company weekly, bi-weekly or monthly. The company then processes the payroll and sends you back data with all calculations including net pay, insurance and year-end returns such as PF, Income Tax, Profession Tax and so on. Payroll outsourcing company takes the responsibility of payroll processing off your mind completely and they ensure everything is done correctly and on time. If you have a business which operates in different states or different locations, it might be the best choice for you as they will keep track of all these different states and governments regulations. Giving you more time to concentrate on more important matters related to the core of the business is another great benefit of payroll outsourcing. This will not just save you time and money, but growth of your business can be expected.