Why You Must Outsource Your Payroll
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 recent legislation. Whether payroll outsourcing is cost-effective depends on the complexity of the organization’s payroll requirements.
The service level of payroll outsourcing varies – some suppliers provide a barebones service and others will also deal with everything involved, such as liaising with HMRC and maintaining full compliance without the main organization ever having to deal with payroll. But what are the benefits of it?
1. Time saved
Regardless of the number of people employed by your business, attending to payroll demands a great deal of time and attention to detail. Pay period follows pay period, each time requiring the business owner to input considerable amounts of data.
Outsourcing this function immediately frees up precious time. Employers only need to make contact with their customer service representative once each pay period.
2. Cost saving
Time saved is money saved. Think of the time required for calculating payroll, printing, signing, and distributing paychecks or pay stubs, Generating reports for in-house and accountant use and preparing and remitting payroll taxes and returns to government agencies
Payroll processing is a complex and potentially risky business operation. Even with trusted employees, there is always a risk of identity theft, embezzlement of funds, or tampering with company records for personal gain.
There's also safety risk when using in-house payroll software: How safe and secure is payroll data on the company's server or network?
4. Compliance with regulations
Generally speaking, small business owners aren't experts in the complicated world of government tax regulations.
At the same time, they are legally responsible for any cases of misrepresentation or a failure to accurately report employment taxes to federal and state government agencies.
Government rules and regulations are always changing and business owners can't be expected to stay on top of these changes. Professional payroll providers must stay current with rules, regulations and changes.
5. Better reporting
Payroll processing companies provide a wide array of reports that address the most common reporting requirements.
Such comprehensive reports may not be possible with your in-house payroll software or may take a long time for your IT staff to figure out or develop. You can quickly get the outsourcing company to deliver specific & ad-hoc reports for your analysis.
6. The expertise of professionals
JAC Business Processing Unit has professionals to assist payroll processing inside and out. These individuals specialize in the complexities of payroll taxes, as well as compliance with government regulations. It's what they're trained to do and part of the guaranteed service we provide.
Payroll outsourcing can save you from all the challenges of changing rules, doing individual payroll calculations and having to answer your employee's every day questions about their payroll. You get comprehensive reports, direct access to payroll experts, and save time and money in the process. It also results in having a greater peace of mind, and more time to focus on the business.