Did you know that more than 40% of small businesses make mistakes on their payroll tax each year?
In some cases, your organization could face penalties and fees as a result of an error and these will just increasingly pose a threat the more they remain ignored.
Invest now in perfecting the payroll process so your company doesn’t pay for it later.
What is payroll outsourcing?
Payroll outsourcing is when a specialist company like M&A Acountants LLC manages your payroll, ensuring your employees receive their wages accurately each month, securely, and on time. Your payroll will operate seamlessly, freeing your HR, finance and admin teams from time-consuming work.
Payroll outsourcing is when an organization uses a third-party service provider to handle the administrative and compliance tasks associated with employee pay. Depending on the payroll outsourcing firm, this may include filing payroll taxes and payments on your behalf.
Many companies choose outsourced hr and payroll services due to the manual, time-consuming nature of these tasks. This automation of payroll processing allows HR and payroll managers to focus on more strategic tasks in their organizations.
Is it A Good Idea to Outsource Payroll?
The answer to this question depends on what the outsourcing payroll risks and benefits are for your company. It’s essential to consider the risks and benefits and how they may impact your organizational processes.
For example, some HR professionals may be reluctant to provide third-party access to confidential company data for payroll processing and tax filing purposes. So it’s essential to perform due diligence and ask what types of security protocols a payroll outsourcing firm employs.
However, many payroll and HR outsourcing providers understand how critical data security is for businesses. They utilize industry-standard security protocols and undergo rigorous testing and certification, like SOC 1 Type 2 audits, regularly to ensure customer data is always protected.
Another example is understanding the knowledge and experience a payroll and HR provider brings to the partnership. Many payroll management outsourcing services require their support staff to be certified by the American Payroll Association (APA).
This certification verifies and validates an individual’s payroll expertise. Some outsourced payroll providers also have a dedicated tax compliance department on staff. These payroll tax experts handle the correct payments and filings for your company. They assist with federal, state, and local taxes to ensure your business maintains compliance.
If you’re still undecided on the pros and cons of outsourcing payroll to a third-party company, consider the following questions:
How much time is manual payroll processing taking away from strategic initiatives?
Is your organization experiencing growth, or will it in the future?
How are you tracking employee time and attendance?
What is your plan for managing payroll tax compliance?
Do the risks of outsourcing payroll services outweigh the benefits to your organization?
There is a lot to think about when considering HR and payroll outsourcing. Partnering with a provider that offers payroll management outsourcing services can bring value to your business. The benefits of outsourcing payroll functions include time savings and reduced compliance risk. Consider the advantages and disadvantages of payroll and benefits outsourcing for your organization before you make a decision.