Payroll processing involves doing tasks such as updating employee master file, entering their working time and manual payments, alter deductions, deposit taxes etc. However, employee payroll processing is a tedious and time-intensive task that allows little margin for error and is usually well outside most companies’ area of expertise.
Given the importance of human capital it thus is very necessary for any business to have proper payroll management to ensure compliances and avoid irritated employees.“Remember most employees live from pay check to pay check.”
Reasons on how Outsourcing Payroll Management helps:
- Keeping an account: Corporate payroll services cover the requirements of filing state and federal payroll taxes for your business. This reduces the headache of knowing the latest tax code, filing deadlines, deposit requirements, tax tables, government forms etc.
- A lot more Productivity: Since you are not busy in doing the things which can easily be accomplished through a third party at much lower costs, you can save your precious time and can use your valuable time and energy for core and more important business activities.
- Cost-Effective: Carrying out the payroll function in-house may require you to hire experienced staff to do the activities involved. On the other hand, HR payroll solutions providers charge a reasonable fixed amount or pay per use. This is often much more cost-effective than maintaining an in-house payroll.
- Multiple Options: Payroll outsourcing offers a wide range of service choices to clients. Many payroll outsourcing companies offer services outside of payroll processing, such as new-hire reporting, tax payment and reporting, and employee benefits assistance.
Advantages of Choosing Payroll Software
Payroll software is another great method if you would like to still keep payroll in-house. The software takes care of a company’s payroll requirements such as employees’ payment and the filing of their taxes. It can also include keeping tracking of hours, calculating wages, withholding taxes and deductions, generating pay-slips and much more.
- A time saviour: Time is money. For any company, no matter how big or small it is, it’s very crucial to save time on those things which can be done in a fraction of the time even if the time is that of a less skilled person. Payroll software really helps in achieving this goal by offering a range of automated features.
See: Step-by-Step Payroll Documentation Compliance Guide for HR Professionals
- Attendance track-record and planning: With good payroll software, you can maintain an employee calendar that gives you a super easy way to manage absences and overtime.
- Tax updates and reminders: You might have missed the latest tax updates; but if you use Payroll software, it will take care of this as well by notifying you when these updates arrive.
- Security: By managing payroll in-house with payroll software, you can eliminate the uncertainty and information leaks that come with sending of an employee’s information to a third party.
- Customer Services: In addition to software tutorials; trusted and reputed payroll software providers offer excellent support services as part of the package, to help you with software issues or any assistance you require.
Some of the issues with in-house payroll processing by using the payroll software are:
- In-house payroll processing is a tedious and time-consuming task and is usually well outside most companies’ area of expertise.
- Adds unnecessary infrastructure, lower skilled personnel, and in-house IT personnel
- Missing out on compliances is a common occurrence.
- Higher chances of small and micro errors in payroll calculation that could irritate employees, as for them they are major issues.
Now it is upon the senior management to carefully weigh the pros and cons of a payroll implementation program that best works for their organisational requirements.
Also read: Why do companies outsource payroll functions?
Image credit: employee-template.com
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