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.