The summer is winding down and employers around the country are looking for workers to fill the spots of college students who are returning to college. And while filling these open jobs is one task, another task is the variety of services the payroll provider must complete to bring new employee on board. Cutting the last paychecks for summer workers, gathering the necessary tax information from new employees, and sending the trial information for new paychecks for new employees.
For many companies, both large and small, outsourcing to a payroll provider is the best solution for meeting the demands of a new work force starting at the end of a summer staffed by college students. All new employee hires require extra work by payroll providers, but major transitions like those that happen at the end of a summer can create even more work.
Is Your Business Looking for a More Efficient Way to Process Payroll and Employee Benefits?
There was a time when the biggest decisions an employer had to make was how much they were going to an hour and how often they would cut checks. In those much simpler days the checks could be cut and handed out on the same day. Whether the checks came once a month or once a day, the entire process was pretty simple. This is not the case any more.
With complicated tax tables and pretax deductions, the process of payroll for small companies, as well as large companies, can be complicated. And while companies can purchase their own software to determine taxes and other deductions, the accuracy demands that the software is updated every time there is a tax code change.
For many companies, the decision to outsource to a payroll provider is any easy one to make. In fact, more than 85% of certified public accountants recommend that even small businesses employ professional payroll providers. These providers can make quick work of the most complicated payroll services, including overtime pay for exempt employees.
Companies that make the decision to find a payroll outsourcing provider only have a single report to approve and only one invoice to pay. In addition to receiving payroll services, these outsourced companies can also provide offer Human Relations Management, Employment Standards Association (ESA), and Occupational Health and Safety (OHSA) compliance, and government remittances. Complications that can add hours to the tasks that would need to be completed by in house bookkeeping staff.
What Is the Purpose of the Company That You Own?
Do you own a family operated dry cleaning company? Does your business offer home design plans to new home buyers? Maybe your business installs fencing, deck, and other backyard additions. In all of these cases, and the majority of other businesses, payroll is not the main function. Why then should your company continue to spend so much of its time on payroll services?
One of the main reasons that businesses decide to outsource their payroll is so they can instead focus on the primary goal of their business, be it dry cleaning, architecture, fencing, or a variety of other services. In addition to allowing companies to do what they do best, outsourcing payroll tasks limits mistakes that can happen. For instance, business owners who manage their payroll themselves are tasked with responsibilities of totaling hours, performing gross-to-net calculations for each employee, calculating and depositing payroll taxes, and preparing and filing tax returns. All of this, of course, has to be both accurate and timely. Even a small mistake can be complex and expensive. Rather than taking on these risks, some business owners simply hire someone else to complete the payroll tasks.
The end of summer and the beginning of college classes is just one time that businesses and employers find themselves looking for new workers. Other times that require additional, and often temporary, hiring is the holiday season. The large task of submitting all of the necessary tax forms for these new employees can be very time consuming and costly. Rather than having to constantly update the necessary payroll information themselves, many businesses make the decision to hire a payroll provider service, avoiding the risk of costly mistakes.