Take a minute to review the pluses and minuses of switching your business to an outside payroll processing services provider. Featured below are both the pluses and the minuses.
- Time savings – Several surveys over the years completed by a variety of business associations have reported that business owners place payroll and payroll taxes as the number 2 task that takes up the most time and creates the most hassle of all the tasks categories it takes to run a successful business. It’s obvious that running payroll 1 to 4 times a month requires a ton of time and focus to complete. Switching to an outside payroll processing service provider frees up time and improves effectiveness for most business owners.
- Reduction in Expenses – Each pay period requires completion of a long list of required tasks including preparing and paying mandatory payroll taxes, running payroll reports, figuring out wages for the entire company staff, printing, signing and handing out payroll checks.
- Better Company and Employee Data Security – In 2019 payroll processing service providers provide, mirrored backup systems, several server farms, the most up-to-date technology, solid secure SSL (secure socket layer) firewall protected systems to safeguard private employee and company information and data.
- Keeping Current with Regulations – It is hard to stay compliant and current with payroll tax laws and payroll taxes. The financial penalties are huge. Payroll processing service providers know all the rules and regulations like the back of their hand. Their primary objective in running their business is implement this knowledge, process your payroll for your company and keep you current with all requirements and regulations.
- Ease of Use Getting Wage Reporting and Employee
– Certain payroll processing service providers do not offer reporting
on payroll costs and other critical data about employees due to the fact they
do not have the information or because the data is on their servers, which your
business does get access to for various reasons.
- Time Issues on Fixing Payroll Mistakes –
Payroll companies are sometimes slow to respond to payroll errors. If the
company or the employee needs aren’t met when it comes to payroll errors, it is
bad for everyone.
- Payroll Services Pricing –
In some instances payroll processing service providers do not customize pricing
to fit a company’s needs. Check to make sure the services provided fit your company’s
needs and not the other way around.
- Chance Your Payroll Processing Provider Closes
Its Doors – Businesses close all the time. It can be due failure,
loss of a primary partner or any number of reasons. If this were to happen to your business, you
may lose out on access to company payroll data, employee data and potentially
your company’s money.
minuses described here do not have to be part of your picture. The main thing
to make sure you do is your due diligence in checking out the company thoroughly
first. Use the following guidelines to make a smart payroll processing service
- Recommendations from associates, mentors and business owners
- Documented credentials including time in business, similar company
payroll processing experience and confirmed business licenses.
- Confirmed quality customer service and personal attention to
- Services and support offered meet your company’s needs
- Pricing and additional fees or charges are documented upfront
- Reporting of data, data reporting needs and security of data are