Managing payroll in-house is an overhead for small businesses.
Because hiring expertise for payroll administration is not affordable for a small business owner. On the contrary inefficient payroll management heavily impacts the bottom line.
Thus payroll for small businesses becomes an expensive headache for a business owner.
In such a scenario, moving to payroll services for small business can cost half of what it is required in-house. Hiring the payroll services eliminates the need to hire a full-time payroll manager and relieves you from handling payroll.
Are you getting surprised to know how much benefit payroll services provide? Read on to know more...
Look at the Benefits of Payroll Services for Small Business
1. Saves critical time
Payroll processing is a time-consuming process. It needs great attention to detail. From calculating payroll amounts to generating in-house reports or preparing and filing tax returns to printing, or signing, and distributing paychecks. All these activities require a good amount of time.
Outsourcing to payroll services makes the small business owners feel more confident as payroll services take out business owner’s stress and frustrations. They immediately free up your time from the complicated calculation and ensure the appropriate deductions were withheld.
2. Payroll confidentiality
Payroll confidentiality is mostly underrated. Leakage of payroll details to those who should not know can have severe repercussions. Especially at the senior level leakage of payroll details becomes critical.
Outsourcing to payroll services ensures that confidentiality is maintained. In fact, the accountant also could not know the earnings of staff members as outsourced payroll services sometimes submit a summarized journal entry for accounting purposes. Thus payroll services ensure confidentiality.
Payroll mistakes can’t be taken lightly. These mistakes may land you into big trouble. Incorrect tax filing or delayed filings raise a red flag. They can lead to undesirable events such as hefty fines and penalties.
Outsourcing to payroll services ensures no penalties and fines. As payroll services team is an expert in payroll management. Since they provide service to different organizations they have to be updated with all the latest changes and regulations all the time. Thus they can manage the calculations with utmost care and accuracy.
4. Increased security
Payroll processing is a complex process that involves loads of monitoring due to the inherent risks involved. Loss of personal data will be a big loss for your business. Frauds like tampering with company information and abstraction of funds may incur heavy losses.
Payroll providers invest huge money in security measures. This is not possible for you to have in-house if you are a small business.
5. Payroll calculations and direct deposit
Payroll services calculate the taxes and deductions for you that are accurate and convenient. They also handle the adjustments and processing of any interactions which involve direct deposit accounts in your business.
Later they automate this process making it more convenient and use with thousands of different banks without issue.
Maintaining payroll in-house for a small business is very expensive. Hiring the trained or expert payroll person for full time is costly.
Outsourcing to payroll services is more cost-effective for small businesses compared to hiring an expert accountant. You not only have to pay a salary to them but also to other staff to manage the rest of your HR responsibilities. When you outsource payroll you need not hire any employee for managing payroll. This enables HR professionals to focus more on other important duties.
7. No infrastructure and maintenance cost
In-house payroll management requires expert resource and payroll software. The software needs a one-time cost as well as an upgrade cost. To process payroll, you need the latest tax tables installed on your system all the time. This is an additional time and money consuming activity, you can’t avoid.By outsourcing to payroll services, you can say goodbye to these maintenance and infrastructure costs easily.
8. No-Risk of Losing In-House Payroll Employee
The risk of losing a trained employee is more in small business. Because employees do multi-tasking.
If your overworked payroll employee who does the multi-tasking may quit his/her job and walk out with the knowledge acquired during the tenure. It does not affect you much.
By outsourcing payroll functionality, your payroll process will be streamlined and you will be stress-free from the above. The quality of output and accuracy will justify your investment giving higher ROI manifold.
Managing payroll online gives the provision to send a notification to you. No matter it’s a simple or large update, you will receive a notification which will guide you further or help you to act upon.
- Unique way, where Payroll services/solution helps SMEs to grow their business
Managing, calculating and organizing the payroll systems for SMEs are difficult to handle.
- Payroll services/solution allow devoting your time in key aspects of business
A small business owner has to wear multiple hats and does many things from hiring, sales, marketing to payroll management. As a start-up, he cannot recruit resources for each department.
When it comes to payroll, being a start-up company too much pressure mount on your shoulder to pay your employees on time and do your taxes right the first time. So that you can’t be avoided for auditing and not fined penalties for the wrong thing. Else your firm’s reputation will be on stake.
One pay period will follow another, you will continuously spend time and energy ensuring that employee data is input correctly. So your employees should be paid on time. You may not be able to spend your time in other business activities which are essential for the growth of your business.
In such cases outsourcing to payroll services frees you from all these stressful activities which are non-core activities. A payroll service enables you to focus more on the core aspects of your business which can add revenue for the organization.
Thus payroll services /solutions are very helpful for SMEs in their business growth.
What Services Does a Payroll Service Provider provide?
A payroll service provider is an expert in payroll processes. Therefore payroll services for small businesses are delegated to them. The payroll provider ensures employees are paid on time and meets all the legal compliances. Thus, small business owners are stress-free of payroll and focus more on important business tasks.
In addition to processing employee’s salary, small business payroll services provide the following more services:
- Eliminate print checks and initiate direct deposit payments
Payroll services initiate a direct deposit in employee’s bank accounts. This saves time, reduces the risk of errors, fraud and lost checks. Thus they improve the process for you and for your staff as well.
- Track employee time and attendance for payroll calculation
Time management and payroll go hand in hand. Therefore payroll services recommend using software that integrates both payroll and attendance.
- Calculate taxes and ensure the correct deductions
When your business grows keeping all your tax papers in order can be difficult. Payroll services manage all the payroll taxes and deductions. They deduct and report the tax amounts, and then pay the funds to the appropriate tax authorities.
- Provide e-payroll record to employer and employees
Paying salary is one of the main activities executed by the payroll department but keeping a precise record of its payroll is more important for a business. Payroll services for small business store all the files electronically. This keeps the data secure and can be accessed by employers and employees both any time. With self-service options, they have access to all payroll records like pay history, deductions, hours worked, benefits, and leave requests.
- Ensure compliance with government rules and regulation:
Maintaining compliance with government rules and regulations while processing payroll is a big challenge in the absence of expertise in the payroll department. Payroll services will ensure you stay compliant and avoid fines and penalties.
Payroll services for small business are a must because small business owners can’t afford payroll employee costs.
Payroll service provides many benefits to the parent company. They do accurate tax calculation and tax filing. If anything goes wrong then Payroll services enable HR to put their efforts into business areas.
At pay square, we deliver a unified payroll solution for small businesses that includes payroll and is designed to help you succeed. Explore our end to end solutions to learn how to pay square can help you save time, money and headaches.