Increasing Payroll Accuracy and Efficiency

If you’ve been the type of business owner that does your own payroll then you’ve probably discovered the nightmares associated with laws that seem to change every month. The reason behind not wanting to make a mistake when doing payroll is simple – you will have to do your payroll over again and who wants to do that? However, there will be some fines tacked on to that extra work as well. Take a look at these benefits of why outsourcing payroll processing is smart.

1. Compliance. Compliance happens to be one of your biggest benefits that you will see when you decide to outsource payroll. It’s no secret that the Social Security Administration, Department of Labor and IRS all have regulations for every type of business. Often, these regulations are lengthy, dense, and can be hard to follow for those not necessarily financially oriented. Because payroll processing means meeting these requirements, sometimes it can be easier to have someone else compile payroll, as they not only understand the regulations better but can file the appropriate paperwork more efficiently than you would.

2. Confidentiality. This is an important feature that businesses can be offered by different payroll processing companies or systems. By promising confidentiality, the owner gives up responsibilities of the payroll processing to someone else. This is really important in a family run company because it can prevent another family member from seeing what another family member is making. You can also help increase confidentiality in payroll processing by using a biometric or electronic time clock. Thus, time cards are no longer needed and cannot be seen or taken by another employee.

3. Convenience. When you outsource your payroll, you are allowing yourself the knowledge that the hours that are being reported are being taken care of by whomever the processing company. It also gives a company the convenience of having to report hours and this means not having to deal with taxes at all. All vital payroll info, checks and reports are sent the very next day depending on whether or not you need the actual check.