According to Apex Human Capital, it’s estimated that businesses outsource about 33 percent of their human resource operations and around 30 percent of their finance operations, including payroll processing. Once considered strictly for large corporations only, today, outsourcing payroll processing is becoming increasingly common among for even small business owners and finance department leaders. Why? Because businesses of all size are finding it more necessary to gain efficiencies and manage appropriate taxing—and they don’t have the resources or expertise to do it alone.
WHAT IS PAYROLL PROCESSING OUTSOURCING?
When a business hires an external partner to handle all payroll-related functions of their company, it is outsourcing its payroll processing.
When you outsource your HR functions, it helps you to use your company’s core resources to focus on strategic initiatives rather than managing transactional activities in HR operations.
Wallstreet HR Services (WHRSL) is a full-service Human Resources agency, specializing in providing outsourced HR solutions to companies. We offer services such as: Payroll Processing Outsourcing, Policy & Procedure Development, Employee Recruiting, Employee On boarding, Performance Management, Training and Development and other administrative HR functions.
WHY SHOULD COMPANIES CONSIDER OUTSOURCING PAYROLL?
It allows you to manage appropriate taxing and stay compliant.
- Businesses may hire an external firm to handle all payroll functions to save time and money, reducing the need for in-house trained payroll staff, purchasing and maintaining appropriate software packages, and staying compliant with updated PAYE legislation.
- Tools for mid-market companies that help them with “DIY” taxing may not have the functionality needed to manage appropriate taxing. Outsourcing to a payroll partner takes care of tax compliance. The outsourcer will make sure employee benefits, voluntary benefits, extra savings plans, and pre-tax and post-tax plans flow correctly through to employees’ paychecks so the right amounts are withheld.
- Payroll outsourcing services compute and remit taxes on behalf of clients. If done incorrectly or submitted too late, your company could get pegged with huge fines.
It allows you to easily administer direct deposit transactions.
Accurate and timely direct deposits are a win for both employees and employers. Payroll processing outsourcing helps speed up payments faster than a live check, and it’s also safer than creating checks that can be lost or stolen.
It allows you to keep thorough, accurate records.
- Payroll systems managed by a partner like Wallstreet HR Services brings automation and recordkeeping tools to your organization.
- Managing the appropriate administration of PTO (Paid Time Off) policies is important to a business. An outsourced payroll service has a web-based connection that makes it easy for employees and employers to request and manage time off accruals.
- Reports give a detailed ledger by employee for each pay period with data for wages and deductions. In some cases, that data needs to go into the accounting system for the company’s general ledger.
How do you know if a payroll outsourcing service will benefit your organization?
Business owners and managers need to ask themselves if the people they’ve hired on staff to build and operate their organization actually add value to the payroll process. If the answer is no—which it likely is—then it’s time to consider outsourcing payroll to experts (Wallstreet HR Services).
Other signs: If you’re having problems with accuracy, compliance, or record keeping, you need a payroll partner.
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