Payday — whether it’s once a month or once a week, it’s a day that every employee looks forward to and counts on.
For an employer that manages payroll independently, payday isn’t necessarily enjoyable. Payday requires a lot of time — perhaps even more time than it’s worth.
If you’re wondering what it would be like to have a payroll management service handle your company’s payroll, let us tell you.
Here’s what a payroll service company does…
Most payroll service companies do not take a one-size-fits-all approach to payroll offerings. They realize that every company is different in practically every way, and they cater their services to that reality.
The main aspects of the payroll process include:
Choosing whether to purchase a complete payroll package or parts of it, depends on your own company and its specific needs. For example, the size of your company, the industry you’re in, your turnover rate, the number of employees you have, as well as the ratio of full-time employees to temporary employees will all affect which services you deem necessary when outsourcing payroll management.
A payroll management service would obviously handle standard payroll activities for all of your full-time, part-time and temporary employees as well as contractors. If payroll was simply a matter of writing a check for each employee, you’d probably handle it on your own. However, it’s quite the opposite, and each employee’s paycheck must accurately include and calculate the following:
Multiply all those calculations by the number of employees you have, and that’s a lot of information to gather every pay period. Professional payroll management companies, however, are experienced in collecting and organizing this information so that they can do it quickly and accurately.
Paychecks are arguably the most important part of payday. Payroll service companies will print and send paychecks either to your employees or to you, the employer, to distribute to your employees.
Most companies today offer direct deposit options for their employees. This not only saves on printing costs, but it is also much more secure. Never worry about lost or stolen checks again!
Don’t think that just because you hire a payroll services company to manage your payroll, you’ll be in the dark when it comes to accounting activities. Your payroll management company will provide you with regular payroll reports so that you stay informed about all of your employees’ financials.
Additionally, your employees will have access to their own payroll records through an online portal.
Taxes are probably the most complicated part of payroll. Not only can they be confusing, but tax laws are constantly changing. A payroll service company will keep up with all of these changes and ensure that your business is compliant.
Not only does the IRS adjust tax laws, but employees frequently make changes to their withholdings. Add to the mix, employer contributions such as retirement plans and insurance benefits, and there’s more than enough to keep up with from paycheck to paycheck.
Some payroll service companies handle more than the basic parts of payroll. If your company hires a lot of temporary employees, you may want to outsource a payroll service that manages new hires as well,
Payroll is directly affected by new hires, which brings us to another important point. How do you find new hires that are right for your company? OpSource Staffing can help. Contact us by phone or online to start the hiring process today.