As a business owner, you are always looking for ways to streamline operations, increase efficiency and reduce costs. One way to do this is by outsourcing your company’s payroll functions.
How? Payroll outsourcing involves working with a payroll provider to help handle payroll processing, tax filing and remitting payroll taxes, among other payroll-related tasks. In this article, we'll discuss 14 payroll outsourcing benefits and how it helps your business in the long run.
For larger companies with a fully staffed HR department, managing payroll in house might be the logical choice. At small businesses, however, managers can find themselves stretched thin by the responsibilities of managing payroll. It's a thankless job with many details to attend to and countless rules to follow. Meanwhile, tax authorities are always looking over your shoulder. Here's a look at the things that send business owners racing to their computers to Google: "payroll outsourcing providers."
Outsourcing payroll duties can help reduce costs for small businesses. When you outsource payroll, you minimize the need to hire additional staff or payroll managers that you’d need if you’re managing payroll in-house. This can cut costs on salaries, benefits, and training.
In addition to its complexities, processing payroll is time-consuming. Outsourcing your payroll service can free up time so you can focus on your core business activities. This can help increase productivity and reduce stress, all while giving back valuable time to your staff to focus on things like HR services or other business needs.
Another benefit is the ease of offering direct deposit or pay cards to employees. Direct deposits and pay cards can save time and money by eliminating the need for paper paychecks and reducing the risk of errors associated with manual processing. Employees enjoy the convenience of having pay automatically deposited into their bank accounts, or having funds available on a pay card which can improve employee satisfaction and retention.
Outsourced payroll services can enable employee self-service, meaning that employees can access their payroll information—such as pay stubs and W-2s—online. This saves time and reduces the workload for your HR team.
The rules involving payroll taxes are complicated. Payroll processing involves compliance with a range of federal, state, local and industry laws. Using payroll outsourcing services can help your business comply with regulations and requirements governing pay and payroll taxes.
Benefits administration alone can be both a time-consuming and difficult task, but the process can be simplified by allowing your payroll service provider to help manage benefits administration. This can include tasks such as processing open enrollments and terminations of benefits, managing COBRA administration, tracking employee deductions, and handling employee inquiries.
Payroll data is sensitive and needs to be protected from unauthorized access. Outsourcing payroll services can provide enhanced security measures, like data encryption to help protect your payroll data from theft or fraud, and also ensure that your employee data stays secure.
Payroll outsourcing providers give your business direct access to payroll experts who have experience in handling payroll processing for various industries. This can help you with costly mistakes and help ensures that your business is in compliance.
Payroll software is constantly evolving. A payroll service provider can give you access to the latest technology without you having to invest in expensive software and upgrades.
Payroll errors can be costly and time-consuming to correct. Payroll outsourcing companies can help reduce errors by using automated payroll processing as well as checks and balances. The reduction in errors goes hand in hand with time savings—which will only save your business money in the end.
Outsourcing payroll can help you integrate your payroll data with other systems, such as your accounting software or time and labor management system. This can streamline your processes and help reduce the risk of errors.
Your payroll functions generate a great deal of useful payroll data, but do you know how to take advantage of it? Payroll providers are well equipped to gather and analyze actionable data. Often, they can share easy-to-understand reports with you based on your payroll data, which can help you make more informed decisions about your payroll and other business operations.
Payroll processing can be stressful, especially for small business owners who have limited resources. Outsourcing payroll services can help reduce stress by giving you more time to focus on other things.
By working with a payroll provider, you can use that time gained back to prioritize core business activities, such as marketing, sales and customer service. This extra time and attention can help you focus on growing your business and, as a result, increase your profits.
Outsourcing payroll services can offer many benefits for small businesses. With the right payroll provider, you can streamline your payroll process, reduce stress, and prioritize your core business.
When choosing a payroll outsourcing provider, it is important to select one that meets your specific business needs. Carefully consider factors such as experience in your industry and a proven track record of accuracy, compliance and security. You’ll benefit most from a provider that specializes in your desired services, is cost-effective for your business and allows for customization.
TriNet offers access to a simplified payroll solution that helps your business not only manage payroll, but handle payroll tax filing. We’ll navigate the ever-changing tax responsibilities, codes and requirements so you don’t have to—and help you to stay compliant. Additionally, we can quickly shift our support options as your business evolves.
Our payroll services are accessible online and can be completely paperless with e-pay stubs and electronic W-2s. Everything you’ll need is available with a mouse click, and our self-service platform enables your employees to enroll in direct deposit, retrieve pay stubs and change their personal information as needed. Our service can also integrate with popular accounting systems.
This communication is for informational purposes only, is not legal, tax or accounting advice, and is not an offer to sell, buy or procure insurance.