What is Payroll?
Payroll involves much more than simply mailing cheques. It encompasses a variety of tasks, not all of which are necessarily carried out by the same entity. The process begins with the integration of employees into a payroll system and extends through end-of-year tax responsibilities.
This act of hiring away business functions, or “outsourcing,” is now recognized as a widely applicable business strategy, and its ethical, socioeconomic, and political implications are often overlooked. Its financial value as a near-term, cost-cutting measure has been boosted dramatically by globalization.
Payroll “functions” include gathering employee information, setting up automatic payments and direct deposits, tracking hours or timesheets, calculating wages owed, and managing information relevant to the tax process such as health insurance and workers’ compensation claims.
- Payroll account setup
- Payment Method setup
- Instituting security measures for safeguarding Company and employee information
- Ensuring compliance with government institutions
- Tracking time worked
- Managing employee deductions
- Remitting yearly payroll taxes
Benefits of Payroll Outsourcing
1. Reduces Costs: Outsourcing payroll eliminates the need for hiring additional staff, setting up a dedicated payroll department, and purchasing equipment, and software, which can be costly.
2. Enhances Data Integration: Payroll service providers offer seamless payroll systems that are fully integrated with other HR software, making it easier to manage and track employee data across various departments.
3. Ensures Compliance: Payroll service providers stay up-to-date with the latest tax laws, regulations, and labor laws, ensuring compliance.
4. Saves Time: Outsourcing payroll frees up valuable time, allowing businesses to focus on their core functions and achieve their strategic goals.
5. Improves Data Protection: Payroll service providers offer security systems that protect sensitive personal and financial information from unauthorized access, and identity theft.
6. Provides Expertise: Payroll service providers are staffed with qualified and experienced payroll professionals who offer a depth of knowledge and expertise that businesses may not have in-house.
7. Offers Flexibility: Outsourcing payroll offers businesses the flexibility to scale up or down their payroll services as needed, depending on their changing needs and budget.
In conclusion, outsourcing payroll can be a valuable investment for businesses, leading to increased efficiency, reduced costs, and improved compliance. It is essential to choose a reliable and experienced payroll service provider that offers a robust payroll processing system, strong customer support, and flexible option.