For many companies, particularly small businesses, payroll can be a complex and time-intensive task, as payroll processes might include anything from figuring out wages and tax withholdings to updating vacation and deducting employee-contributed benefit payments.
Due to the fact that payroll can be so complex, many companies use a third-party service provider. In most cases, outsourcing payroll can cost one half of what it would to do it internally. Employing an outside service also gets rid of the need to hire full-time payroll staff and gives HR staff more time to work on other tasks.
Consider the following benefits of outsourcing your payroll process.
More Time for Top Business Priorities
Irrespective of the kind of company you run or the industry it’s in, if you have a staff, handling payroll-related issues take up a substantial amount of resources. With pay period after another, handling payroll is a constant demand on time, energy and other resources. Employee information has to be collected and then verified.
Even if you have staff dedicated to handling payroll, outsourcing to a third party can allow staff to dedicate their time to other, equally important tasks.
Better Data Security
In our time of hacking and personal data theft, payroll can be a high-risk proposition for your business. There’s the possibility of identity theft, unethical behavior from staff members, embezzlement and many other risks.
On the other hand, payroll partner with a track record of security and integrity has the tools necessary to safeguard critical employee information. Because security is integral to its business model, a high-quality payroll services provider invests in the latest systems for data storage and protection.
With third-party providers, a company simply provides employees’ hours, salary figures and payroll deductions, and the company cuts the check. Many payroll providers also let their clients update employee payroll data through an online platform. Many businesses that offer payroll services also handle retirement plans, direct deposits and other payroll-related issues. They can also offer payroll reports, calculate worker tax responsibilities, and put handle annual W2 forms.
You’re most likely in business to create products or provide services to your customers, not to stay abreast of state and federal payroll laws. However, every company must abide by those guidelines – or face rigid financial, and potentially legal, penalties.
A company that specializes in payroll services does have to keep current with payroll regulations because it’s an essential portion of the services they offer. For small companies, outsourcing means much less managing ever-changing guidelines, laws and tax structures; in addition to managing unique HR situations. In short, it allows a small business to contend with bigger businesses on a more level playing field.
We Can Simplify Your Payroll Responsibilities
At Cornerstone, we work with our clients to ensure they are expertly handling all of their payroll responsibilities. Contact us today to find out how we can provide your company with the talent it needs without overly complicated administration.