Payroll can be one of the most time consuming tasks that human resources take care of. In fact, business owners who choose to calculate their employee payroll without outsourcing it are responsible for keeping track of total hours, calculating each employee’s gross to net differential, figuring out payroll taxes and making sure that tax returns are filed on accurately and in a timely fashion. By taking advantage of payroll providers, the employer does not have to deal with any of these time consuming tasks.
Fortunately there are a number of payroll companies that can do small business payroll and even do online payroll. Small businesses will find that choosing to outsource payroll can be time saving and cost saving, especially during the busy tax season. Instead of mucking about with confusing payroll software the company is free to use its resources on other, more important things instead.
Too often companies end up getting bogged down trying to deal with payroll issues and leave other things such as the day to day running of the business or marketing by the wayside. This can be a big problem and one major reason why for smaller staffed businesses outsourcing payroll is a great choice that can pay for itself time and time again. It is much better to pay a small price up front then a larger one down the road.
In fact, when it comes to using payroll providers, over 85 percent of certified public accountants recommend that small businesses employ their expertise. For small businesses that choose to use payroll providers, outsourcing payroll and 401(k) services to the same provider makes sense because it provides focused expertise, continuity, regulatory responsibility and security.
While many companies will likely outsource payroll to payroll providers, they will likely utilize a time and attendance management system that collects, tracks and manages employee work hours and pay. The information gathered in this system is then used by payroll providers to calculate pay. Even if a company is outsourcing payroll services, it is still key for them to be able to keep track of hours and attendance on site. Many have the time and attendance program built right into their computer OS, such as at a restaurant or retail store.