Outsourcing Your Payroll
Outsource Your Payroll with a Total Workforce Management System
Payroll is one of the most important functions of the human resources department – and it’s also one that’s time-consuming and prone to error. An efficient and flexible payroll solution can make a huge difference, especially if you’re already feeling strapped for time and resources. Modern payroll technology can simplify the process, prevent mistakes, and yield insights that can boost your company’s bottom line.
Many companies that currently process payroll internally wonder if outsourcing is the right solution. Outsourcing payroll can reduce the frustration of making sure employees are paid on time, while also ensuring your business is compliant with all payroll tax regulations. Other benefits include:
- Increased efficiency: Gain time to focus on other aspects of your operations.
- Employee self-service: Employees can log in to one system and access their pay information, benefits enrollment, time card, important documents and more.
- Payroll tax compliance: According to the IRS, 6.8 million penalties totaling $4.5 billion were issued to employers for incorrect payroll tax filings in 2013. Choose a payroll provider that offers a payroll tax compliance guarantee and will take responsibility for any penalties incurred. This benefit alone can provide enough cost savings to justify outsourcing payroll.
- Reduced errors: The confidence of running an error-free payroll is a great benefit of outsourcing. Consider providers that offer the flexibility of fixing errors prior to payroll processing.
- Data integrations: Using a payroll system that offers integration with existing business investments is a great benefit. This flexibility gives companies the ability to integrate point-of-sale and time & attendance applications, general ledger and accounting software, as well as retirement and investment systems.
- Unified workforce management: A cloud solution that unifies payroll, time and attendance, and HR in one centralized database increases productivity and allows you to gain insight into your business for more informed, strategic decision-making.
- Cost savings: Outsourcing payroll can significantly reduce operational expenses by streamlining workforce management processes, eliminating printing and shipping costs, and reducing IT expenditures.
- Mobile access: Mobile access to payroll information has become an important benefit of outsourcing payroll. Consider a payroll provider that offers a mobile solution for employees and managers for access to information like benefits enrollment, time off requests, and clock-in capabilities.
- Simplify complex payrolls: For companies with more complex payrolls involving factors like multiple locations in multiple states, different types of employee classifications or shift differentials, outsourcing payroll can simplify complicated payroll calculations.
This article is excerpted from the Definitive HR Guide: Workforce Management Tools and What You May Be Missing