Contrary to the popular belief, managing the payroll is a lot more than writing paychecks. It has been estimated that maintaining the payroll system is one of the biggest expenses which is incurred by an organization which can reduce the profitability. If enhancing profits and maintaining the payroll efficiently without hassles is what you are aiming at, its time to consider outsourcing. As you streamline this complicated business process, it will allow your employees to focus on the key objectives of the business as they work towards greater profits.
A recent survey revealed that processing a payroll in-house can consume up to 40 to 60 hours of productive work each year in a company. On the other hand ,when firms opt for payroll services outsourcing, it saves at least 9% of the total costs. Additionally, a survey conducted across the globe reveals that 85% of organizations desire an improvement in their payroll practices which in turn leads the organizations to debate over whether to run the payroll in-house or opt for an outsourcing provider.
Benefits of payroll process outsourcing:
Ø To make sure that no penalties are imposed on you for errors or for late payroll tax filings, consider outsourcing the payroll function. Once you opt for a payroll provider and provide them with accurate information, they will calculate the payroll taxes, manage the filings in a timely fashion and most importantly bear the cost of penalties if any.
Ø A payroll company is equipped with trained staff wo will completely concentrate on processing the payroll. Thus, even if your employee is on a vacation, has been taken ill or decides to leave your firm, you can still make the best of the payroll expertise.
Ø No longer do you have to worry about paying your employees on time or filing the tax returns correctly. As you provide a professional payroll company with adequate information, they will take care of the rest.
Ø Mistakes in a payroll can anger the employees.Thus maintaining the payroll calls for high levels of accuracy. In most cases, a good payroll services provider is less likely to make a serious error, in comparison to your in-house staff.
Ø Once you outsource the payroll services and there is a mistake, you can seek compensation from the service provider, which is not possible if your own employees are working on the payroll.
A recent PwC report points out that outsourcing the payroll service offers savings which become increasingly significant as the company continues to expand. It has been seen that the savings are the highest when payroll outsourcing is integrated flawlessly with the broader outsourcing strategy of a company.