Have you ever considered outsourcing your payroll processing? Do you know how to choose a payroll processing partner? At some point in your journey as a business owner, it’s time to lighten the load. Dump the repetitive administrative work throughout your organization. To start, take an inventory of tasks your company performs that are:
● Essential for Day to Day Operations: They have to get done or your company will not be able to stay in business.
● Regulated and Complex: They must be done correctly to comply with the law, and require specialized knowledge.
● Suitable for Automation: They lend themselves to the intelligent application of technology solutions.
● Ever Changing: They require constant monitoring and adjustment.
● Not a Core Part of Your Business: They are necessary, but don’t make your business unique in the marketplace.
Payroll administration fits all of these criteria. That makes it an ideal function for outsourcing. There are a number of well-developed, proven software options available in this space. Payroll service bureaus rely on a range of solutions either developed in-house or from respected third-party providers. That includes Apex, Evolution, iSolved, Execupay, and more. They serve businesses across all sectors. Let’s take a look at what you have to gain from working with a highly qualified payroll company.
Benefits of Outsourcing Payroll
Is payroll outsourcing just about saving time for your Accounting and HR departments? That’s a great start. But it’s not the only perk you should expect. In fact, you should get a lot more for your money when you select a payroll service provider. Here are some of the benefits your organization should enjoy by selecting an experienced vendor:
Better compliance with wage & hour laws and tax regulations
The Department of Labor, the IRS, and other agencies have a hand in determining the complex and constantly changing requirements for payroll management. The intelligent, continuously updated engines running behind the scenes in a well-designed payroll system should help keep your business on track with all aspects of payroll taxes. From adjusting for various tax brackets to garnishing wages and handling the complexities of bonuses and tipping, it’s all covered. For multi-state, multi-location businesses, the benefits of outsourcing payroll get even better. So, knowing how to choose a payroll processing partner is a priority.
Accurate, accessible record keeping
Even with a high level of compliance, you can’t control whether the IRS or the DOL is going to want to investigate your company. With a payroll vendor on your side, you know that the records are all in one place. They’re up to date and ready for scrutiny. There’s also an audit trail for any changes occurring over time.
Privacy for sensitive information
Payroll data is one of the most sensitive types of personal information most businesses handle. Therefore, knowing how to choose a payroll processing partner is very important. Doing payroll on-site always leaves the door open for unintended disclosure of this information. When data for time and attendance goes directly to the payroll processor and wages get disbursed directly to employee bank accounts or payroll cards, this risk decreases.
Detailed reporting and analytics
All payroll companies are going to offer some kind of reporting. But your payroll provider should be willing to listen to what matters to you. They should offer reports that supply the information you want. They should also be able to suggest the types of reporting that can deliver new insights into your business. For example, understanding how workers are using their paid time off might help you find better ways to structure employee benefits.
Self-service for employees
Today’s workforce is used to the DIY approach to just about everything. They don’t want to have to talk to HR, call an automated helpline, or submit a paper form to update their tax withholding information, change their address, or view and print their pay statement. A fully modern payroll service will supply a portal that gives your workers the ability to handle basic administrative tasks securely online at their own convenience. You may even be able to white label this portal to give workers a cohesive brand experience.
Security at all levels
From determining permissions for every user to ensuring that cloud-based assets are managed via certified, secure data centers with a suitable level of encryption for data in transit, there’s a lot of security involved in payroll processing. A payroll service bureau has a vested interest in staying on top of this aspect of their business. If they have a breach, hundreds or thousands of clients and millions of employees could be affected. That’s not a risk worth taking. Relying on a trusted, experienced third party processor gives you a greater assurance of security than trying to handle payroll on-site or through your own web-based system. Learning how to choose a payroll processing partner will help increase your security at all levels.
Workflow automation and application integration
Payroll is linked to many other systems, from onboarding to benefits and overall HR management. Smart payroll services providers know that they must be able to integrate with your other systems. Plus, they need to have internal workflow automation for approving raises or time off requests. From your perspective, this should all be a seamless process with no need to enter the same data from one system to the next. Many payroll vendors offer a larger suite of products (including our onboarding system) to take additional tasks off your plate. They aim to ensure all the applications work correctly without the need for expensive custom integration.
Tax credit advantages
From FICA tip credits to WOTC incentives, a payroll partner should be helping you get every dollar you deserve from the IRS in the form of tax credits. Some businesses can realize hundreds to thousands of dollars in credits per eligible employee just by letting a third party expert take on the tedious administration of this process.
To learn about how to choose a payroll processing partner and how Efficient Forms helps automate your onboarding and integrates with payroll, contact our team today. We can also introduce you to our trusted payroll processing partners so you can outsource to a third party that delivers maximum value to your organization.