Be it a small company comprising of 10 employees or a big firm with 1000’s of employees, payroll is always a big headache for the management. Payroll-related tasks are tricky and will incur various difficulties to companies. This is the main reason a lot of companies outsource their payroll-related tasks to other vendors (or other companies) who specialize in skills and knowledge needed. Throughout this article, we will examine some of the services provided by payroll outsourcing companies and the benefits that the host company gets by outsourcing their payroll requirements.
Payroll Outsourcing Company: Services Offered
The main task of these third-party vendors is to maintain the organization’s payroll system. To put it simply, the vendors do the following work on behalf of the company,
1. Calculate the working hours spent by each employee in the given period of time
2. Create time-worked records for audit purpose
3. Manage the payroll of the company i.e. processing salary for the employees
4. Calculate the tax to be paid by each employee
5. Maintain tax documents for proof of tax payment
Thus the payroll service vendors offer an all-in-one service for all payroll issues.
Benefits of Payroll Outsourcing
First and foremost, the benefit of outsourcing payroll is that it saves a lot of time. Payroll processing is normally a time-consuming task that can eat away at the productive hours of the company. Thus outsourcing the payroll gets more productive time for the company to get on with their business. The cost of processing the payroll can also be greatly reduced if you plan to outsource it to a specific vendor. One more important benefit is to avoid tax penalties. According to the statement from IRS, almost 40% of small scale businesses pay a penalty of around $850 per year incurred due to incorrect or late tax filings. This type of error occurs in the UK and throughout Europe, also.
Payroll Outsourcing also alleviates the pain and headache to the business owners as manual payroll processing is not an easy task. They can also avoid updating themselves with the latest technological changes in this field as this would be taken care by the payroll outsourcing company. It also saves the host company from any legal issues that may arise due to incorrect processing of payroll as the service vendors will be experienced and specialized in this field.
So, if you are a business owner thinking of outsourcing your payroll then you are in the right place now. A great example of a high quality payroll outsourcing company is Moore Pay. Take a look at them on their official website. The company is vastly experienced in this area and can provide the best services you could ask for. They have also handled several big firm’s payroll systems and have successfully executed the projects.
Ultimately, payroll outsourcing can be a very useful tool indeed. But make sure it’s the right them for you before you jump into to any contracts.