With the complex nature of payroll, a lot of companies nowadays choose to outsource this essential part of their business.
Taking care of your business also includes taking care of your employees. One better way to keep your employees satisfied is by doing their payroll right. To do this effectively, some companies choose to outsource all or some parts of their payroll processes. Other companies, on the other hand, hire in-house staff.
Of course if your business has employees, you are required to accomplish their payroll accurately and on time. More so, when it comes to your employees’ payroll, it does not just refer to their overall salary. Your payroll program will also have to cover all aspects of your employees’ pay, including benefits, taxes, and other deductions.
Importance of precise payroll management
Payroll refers to the total compensation you have to pay your employees on a given date or for a set period of time. The payroll process will cover your employees personal information and their total number of working hours. It will also include the distribution of payments through bank deposits or checks.
Part of the payroll process is performing accounting functions like record keeping, computations of employees taxes, bonuses, overtime pay, vacation pay, sick time and more. It will also include the deductions to be paid to the government on behalf of your employees (Social Security, taxes, Medicare).
Keeping a precise payroll record is vital to your business. As an employer you are required by the government to comply with the standards of wages. This ensures that you are paying your staff correctly and on time. More importantly, it will help you avoid incorrect fillings of payroll which will lead in payment penalties to the government.
In house vs outsourcing payroll services
You have two options for your payroll processes:
In-house. Doing your payroll in house means that someone within your organization will handle all procedures in the payroll process. You may also purchase a software to help your accounting staff with the functions needed in your payroll.
Outsourcing. Outsourcing your payroll on the other hand means that you are subcontracting either a portion of this process or the full payroll process to a third party. You can directly provide your outsourcing vendor with all your employees information. In some cases, outsourcing providers have portals for employees to record their information. There are also outsourcing companies that include the filing and payment of taxes in their offered services.
Outsourcing payroll services
With the complex nature of payroll, a lot of companies nowadays choose to outsource this essential part of their business. OP360 offers payroll outsourcing services to help with your business productivity.
We have well experienced staff that can handle your payroll processes effectively, within a reasonable cost. You may also check out our list of bookkeeping and accounting services here!
