Managing payroll has always been challenging, but the responsibilities have intensified since the Covid-19 pandemic. While your business is no longer operating in crisis mode, it’s become clear that many changes brought on by the pandemic have become the norm. These include more remote and hybrid workers, along with a highly competitive hiring landscape.
It all boils down to more work and complexity for HR and payroll staff members and a greater drain on your company’s time and budget.
For an increasing number of businesses, the solution is payroll outsourcing: partnering with a trusted provider who can assume any or all of the processes, tasks, and requirements around getting all your employees paid accurately and on time.
As you wind down 2023 and prepare for the new year ahead, maybe it’s the right solution for your company, too. Here’s a closer look at the benefits of payroll outsourcing:
Why You Should Strongly Consider Outsourcing Your Payroll
Chances are, the time you or your staff spend on much of the work related to payroll processing could be better spent on more pressing business priorities. And even if you have a dedicated payroll staff, their time can be quickly lost to calculating pay amounts, generating reports, preparing and remitting taxes and returns, and even simply printing, signing, and distributing checks. By outsourcing, you and your team can be relieved of any or all these responsibilities.
Your outsourcing partner can help mitigate payroll errors, which are frustrating and stressful for both employers and employees. For instance, a mistake in state tax deductions can result in an unexpectedly sizable loss from an employee’s final paycheck of the year. And businesses can be hurt, financially and reputation-wise, by costly fines, audits, and penalties for improper tax calculations. Good talent is hard to find, and word spreads quickly – and no one wants to work for a company with a poor payroll track record.
Outsourcing offers a safe haven for your confidential payroll data. In addition to redundant backup and multiple server locations, a quality payroll provider offers state-of-the-art systems to store and protect confidential information.
Consistent Compliance with Government Regulations
Government regulations can change on a dime, and it can be difficult to stay on top of it all – from tracking every employee’s pay rate, hours, and status to understanding deductions for various programs, including Social Security and Medicare. Every tax must be set up correctly before employees are paid. Your outsource partner is an expert in all things payroll, including staying up to date on these requirements. This is another stress factor removed from your plate.
The best payroll providers offer integrated benefits platforms that allow you to easily add or remove employees from various programs, properly calculate the amounts deducted from each paycheck, and provide related information directly to employees.
See how KeyHR Can Help Today!
For a less expensive, more effective means of paying your employees and managing all aspects of your payroll program, contact KeyHR today.