There are critical responsibilities and a lot of work to be fulfilled by a human resource department. Managing the payroll is one of the essential tasks that the HR team has to handle. However, many companies regrettably decide to manually handle payroll and HR processes. Payroll management is seen as another annoying task handed to an already overstretched human resources department, when handled in-house. Global payroll outsourcing is one of our specialities at TopSource Worldwide.
The time that should be set aside for other important human resources tasks is gobbled up by the seemingly endless list of an in-house payroll department’s challenges, which include data submission, calculation accuracy and compliance among others. It is a challenge for the human resources department to manage all these challenges in-house, manually. As such, to relieve the pressure that the HR department is under, many organisations are now choosing to outsource payroll and HR responsibilities to payroll outsourcing service providers.
Definition Of A Payroll Management Company
A company that takes over all or part of the payroll function of another organisation is referred to as a third party payroll services provider. This is a huge advantage to companies that place a premium on their time and also want to make sure that their staff and their taxes are paid accurately and at the right time. Businesses can even save money by ensuring that they avoid hefty tax penalties with the help of payroll outsourcing service providers.
What Do Payroll Companies Offer?
Payroll calculations are not the only service that payroll service provider offer. To provide more engaging experiences for employees and minimise time intensive administrative duties, employers may take advantage of technology.
Payroll companies can do the following:
Automated Payroll Processing
The amount of time taken in calculating pay and making payments to staff members reduces significantly, when a process is automated. Direct bank deposits and paycheques are the two main payment alternatives available.
Wage Garnishment And Withholding Taxes
All payroll deductions, including garnishments and taxes, are withheld and paid off as needed and in a timely manner, from employee earnings, when automated payroll systems are used.
Tax Compliance And Filing
All compulsory taxes will be paid and filed on behalf of the client by full-service payroll service providers.
Payroll Reporting
Businesses can conveniently come up with comprehensive reports that including everything from their payroll processes, like hours worked, withheld taxes and paid wages.
Employees Get A Self Service Portal
Human resources department administrators no longer need to guide employees in editing their personal information or viewing their tax details or pay statements.
Advantages Of Payroll Outsourcing Companies
Helping Organisations Focus On Their Core Functions
It’s unlikely that your organisation’s core activities include payroll. As such, you end up taking valuable time from your income-generating activities whenever you spend time or resources on payroll. You can dedicate your time to activities related to your core business functions, like marketing, sales and customer service, by leaving payroll processing activities to an expert.
Seasoned Expertise
You get to reap the benefits of working with seasoned experts when you choose to work with a payroll service provider. This can be quite advantageous, especially if your organisation serves a number of jurisdictions, and you would like to have a professional who understands local norms by your side. Payroll service providers normally hire experts in payroll regulations and laws, including problematic areas of payroll tax.
Time Saving
Whether you have 10 or 100 employees, payroll processing takes a lot of time and effort. You and your members of staff may be required to enter a lot of information when you handle payroll processing in-house. Outsourcing payroll to a trusted third party may seem appealing, when you think about the time it takes to manage and handle this function. You also get to avoid any time losses that might come about as a result of unexpected audits or payroll errors, by outsourcing this function to a seasoned expert. You get the opportunity to focus on your core business, as your payroll service provider helps you avoid all these costly mistakes.
