Payroll outsourcing involves using an external company to manage the payroll of your business. Instead of an internal HR or payroll professional team manager, small-scale business owners handle payroll independently, and a third-party company handles the payroll logistics. Businesses choose outsourcing payroll to cut down on time and money and avoid payroll mistakes that can have grave negative consequences.
Payroll outsourcing can also provide access to safe and easy cloud-based solutions. KeyPay, the QuickBooks payroll software KeyPay is a complete software solution that will save you time and help you stay in compliance. It is possible to use the application or the desktop version to handle everything from the direct deposit and tax withholdings. What is the right time to consider outsourcing payroll? Let’s have a look.
If you are considering outsourcing your payroll?
The thought of outsourcing any aspect of your business may be stressful. Since it’s your business and you should take the reins. However, many small-scale companies worried about things like payroll can prevent you from assuming the position of leader.
There are some indications that it’s the right time to consider outsourcing your payroll system if your present software for payroll creates frequent errors that could turn into an issue. That can result in high costs, wasted time, and productivity loss. There is also the possibility of difficulty following ATO and fair work laws. Moreover, employees could be annoyed because of lengthy wait times for pay stubs.
Furthermore, certain companies risk tax penalties because of poor payroll administration. These are costly, but they can be even more expensive when you add the time to deal with penalties or audits.
What does payroll outsourcing do?
Payroll outsourcing services streamline your payroll processing system. They often automatize many elements of the payroll. That includes the calculation of tax withholdings as well as deductions, depositing payslips of employees on each payslip, preparing payroll reports, and preparing payroll records.
A top-quality payroll outsourcing service will offer you the full range of options to run payroll efficiently. Simple outsourcing options permit payroll data management via a desktop or phone application, while the more advanced options let you connect directly to professional support. These options may also incorporate HR outsourcing capabilities.
Instead of having an internal team deposit your paychecks and calculate tax withholdings and create quarterly tax returns, outsourcing payroll takes care of the entire process behind the back. Furthermore, the services of a professional payroll company greatly reduce the risk of mistakes in payroll processing.
Why should you outsource your payroll?
24.7 percent of all UAE companies and 37.8 percent of USE SMEs employ less than 200 people outsourcing payroll 1. Are you unsure if your small company is prepared? Let’s take a look at some of the advantages you can anticipate.
- Cost savings: Hiring an employee to handle payroll at your company can be costly. In addition, if you’re wasting your time working on payroll rather than focusing on other areas of the business, then you may have a loss. The outsourcing of payroll can be an affordable alternative.
- Efficiency: Time spent worrying about tax-related documentation for payroll and payroll processing other things is time you’re using elsewhere. As the leader of your company, it’s crucial to dedicate your time to the most important things. The outsourcing of payroll can help you do that.
- Precision: Payroll errors can lead to a lot of problems. Employees can become angry and quit your business when they’re paid incorrectly or too late. The outsourcing of payroll reduces the possibility of mistakes, particularly for companies with many employees.
- Protect yourself from penalties for tax evasion: Errors can also lead to tax penalties. When you have a professional payroll company that takes care of taxes, you’ll be free of this hassle. It’s an investment in security.
- HR Services: A few payroll processors come with various HR functions, including time-off management and health insurance. These features can help reduce expenses for your company while simplifying your employee management.
- Direct Deposit: People like to be paid in time. Outsourced payroll lets you create automatic direct deposits to ensure that no one has to worry when their paychecks will come in.
- Onboarding new employees: Outsourcing payroll will quickly place new employees on payroll and prepare them for the first day of work before the pay period that follows.
After you have learned the benefits, you could be thinking: How can I outsource my pay?
How do you outsource payroll?
Payroll outsourcing is simpler than it seems. A little effort now can save you a lot of trouble later on. Here are some steps you can follow to ensure that the transition goes smoothly.
Choose your budget
Like all things in business, it’s best to establish a budget before taking the plunge. The best part is that outsourcing payroll to a full-service provider does not have to cost a lot. You can work with an advisor who will handle your basic payroll, and most likely, it’s just a fraction of the time you’d be spending on payroll conducting it yourself. The first step is to find the correct payroll software and find an advisor who will assist you.
For more sophisticated services, prices may be a bit higher per month, but the savings in time, effort, and accuracy make outsourcing payroll affordable.
Decide on the type of service you’d like to avail
What aspects of your payroll could be the most useful for outsourcing? Are there any aspects of tax, payroll, and employee benefits administration that you’re certain to maintain internally? Make sure you answer these questions while searching for the perfect payroll service provider for your company.
Keep in mind that certain services may be able to handle simple payroll tasks. Others can assist with various human resources-related tasks, including benefits management, time off, etc. Be aware of these requirements while looking for the most suitable payroll provider.
Do your research
This step is in conjunction with the preceding one. It’s difficult to determine the best payroll processing software for your company without conducting thorough research before starting. The research you work on should be based on asking the same questions like those listed above and then looking at each platform’s features.
Certain platforms, such as QuickBooks, offer the ability to choose from various payroll processing programs. That lets you be more flexible in deciding on the best level of services for your company. It is essential to research the specific features and pricing points. So, you’ll know that you’re only paying for the services you require.
Select the best payroll service
After you’ve created an amount of money, determined the requirements you’ll need, and looked into the options, it’s now time to select the right payroll software provider. When choosing a vendor, you should choose one that can be quickly and easily integrated into your existing payroll system. It’s equally important that your employees feel safe and secure in their new payroll process.
A service such as QuickBooks can be a wonderful option to achieve your objectives. QuickBooks is simple and easy to use and can easily integrate with your existing operations. Additionally, our quick, direct deposit system can help ensure that your employees are satisfied with the new system.