Are you struggling with your payroll services every month? Payroll services are one of the most complex accounting functions that most business owners complete — and many business owners could be using their time and effort better in other areas. Rather than spending your time calculating hours and timesheets, you can instead outsource it to the professionals.
What Do Payroll Services Cover?
Payroll services specifically cover an organization’s payroll — paying out employees. Usually, the payroll company will deduct a lump sum from the business and then distribute it to the employees as needed. The payroll service will also complete tax payments, UI payments, and other related payments, such as child support deductions. Some payroll services will cut checks while others will automatically deposit into bank accounts — or a mix of both. Payroll services may even have separate debit cards, which employees can use to access their income.
On the company’s side, payroll services will streamline the process of completing payroll. Often, rather than having to track individual transactions, the company will have a single deduction for the entirety of their payroll — and reports that reconcile this information. On the employee side, everything will operate as though they are being paid by the company, even though they are being paid by the payroll service.
What Are the Benefits of Payroll Services?
Payroll services enable you to outsource your payroll while still keeping control of other areas of your books. Rather than outsourcing everything, you just outsource the areas that you have the most trouble with. When you outsource payroll, you’re able to:
- Improve compliance and reduce mistakes. Payroll is complex. It’s very easy to make mistakes, especially because the amounts and percentages can change. Payroll companies have advanced solutions that ensure that everything is accurate.
- Ensure on-time payments. As a business owner, it’s your responsibility to make sure your employees get paid on time. But you also have a lot of other responsibilities, too. A payroll service ensures that your payments are always on time, no matter what else is going on with your business.
- Reduce the money and time spent. Payroll that could take you 10 hours to complete will take a payroll company an hour to complete — thereby saving you a lot of time. And because the payroll company can do it faster, it will cost you less in administrative dollars to have it outsourced.
- Get support for your payroll processes. If an issue does occur (such as an employee needing to change their bank account), the issue is dealt with through the payroll company rather than through internal administration. This alleviates the amount of work the business itself needs to do.
- Remain scalable. As your company grows, your payroll will grow. While it may be feasible to do it on your own now, it might not in the future. You can make your company more flexible and scalable by outsourcing your payroll now and letting a company manage it into the future.
Many companies that otherwise do their books in-house still outsource payroll because of its complexity and its time-consuming nature. By giving a payroll company a try, you can see what they can do for you — and how much time and money you might save.
How Much Do Payroll Services Cost?
Despite providing a lot in value, payroll services don’t cost as much as one might expect. Payroll services invest a lot in their technology and their processes and can consequently process large swathes of payroll at a time. And because of that, payroll services are extremely affordable. It often costs a company more to do its payroll internally than it would cost them to outsource.
Payroll services are generally based on how many employees a company has and how extensive their payroll tracking will be. The payroll company will usually deduct a fee either monthly or with every payroll run. The best way to find out how much the payroll service would cost specifically is to get a quote from a payroll company.
Are you interested in finding out more about payroll services? Whether you’ve already been struggling with your payroll or you just want a faster, more efficient way, give us a call. We can go over how a payroll service could help you.