Hiring a Payroll Services Vendor – Does it Make Sense For Your Business?

Outsourcing particular business tasks can enable you to free up resources and energy to focus on your core competencies. Payroll is an important function and in all likelihood it makes sense to outsource payroll administration rather than hire resources in-house and dedicate them solely to the function. Payroll companies help you organize your payroll, adhere to policies and procedures, and get employees paid on time.

To stay on top of your tax obligations is reason enough for your company to consider using a payroll provider. Payroll administration warrants attention to detail and even the smallest indiscretion can attract heavy penalties from the tax authority of your country. In the US, the IRS has a history of levying heavy fines on small businesses for even the smallest transgression. Recently released statistics show that one out of every three small businesses is penalized in some way for not complying with tax laws.

Why should you outsource payroll processing? If you company is large enough, you may choose to conduct payroll functions in-house but be prepared to hire at least a couple of employees dedicated to this function. You will also have to allocate resources to continuously train your payroll staff in use of accounting software and to keep up with the frequently shifting state and federal tax laws. Also if you are a growing company that is continuously adding new employees, teams and locations, managing payroll is going to be quite a challenge. Do you really want to get distracted from the core-functions of your business by administering payroll yourself?

Payroll service providers are experts in what they do and have economies of scale since they administer payroll for many other companies. More than likely, they will deliver payroll services to your company cheaper and more efficiently that what you can do yourself.

What Services Do Payroll Companies Provide? Payroll companies provide various services. The following are the most common:

o Calculating pay checks for each employee

o Addressing tax obligations on a local, state, and federal level

o Printing and delivering checks

o Providing management reports

o Tracking employee benefits information

o Automatic check signatures

o Providing direct deposit

o Processing W-2 forms

o Processing 401k and mutual fund plans

o Addressing tax needs for your company and providing tax preparation

How to choose a Payroll Service? Ask for quotes from several payroll companies before making a final decision. An easy way to request quotes from multiple providers is to go to a B2B networking portal like Trade Seam. Keep the following in mind as you decide on the provider.

o Can they provide accurate payroll service without any mistakes in employee pay or providing tax information to the government? Ask for history of efficiency.

o An occasional mistake is acceptable but how quickly can they correct it. If the payroll service provider is overstretched, they may not have the resources to quickly provide the remedy.

o Is the payroll providers system and software compatible with your own operating systems? Would it be possible to transfer data to and from your business easily?

o Are the references flawless? Excellent customer service to business owners and its employees is important.

o How many clients is the payroll provider serving? Large number of clients may indicate a successful service but attrition in the past few months may indicate deteriorating quality. Does the provider have adequate resources to serve your business?

o Is the pricing competitive? Some companies may bait you with low basic fees and charge heavily for extras. Ask for an all inclusive package to compare prices.

Once you decide on a payroll provider, scrutinize the contract very carefully for any hidden fees or charges that may kick in after a few months of service. Check the first few pay checks very carefully for any mistakes. It is better to uncover the issues early enough before they get compounded and more difficult to fix.

Hiring a payroll provider is an important decision for your business. It is tough to easily switch a payroll provider if you make the wrong decision. Make sure you adequately research all possibilities before making a final decision.

Need of Every Business – Perfectly Managed Payroll

Every business owner knows the importance of perfectly managed payroll system. The size of the business is irrespective while managing the payroll because all the paper work still remain the same. The payroll does not only mean the calculation of employee’s salary, it basically means:

  • Keeping a track of every employee working hours
  • Giving due importance to their traveling bills, meal vouchers, retirement benefits etc.
  • Keeping a track of all the taxes and their deadlines
  • Processing the invoices, receipts and company’s payroll

Wrong paper work and unmanaged bills can create lots of problems for the business owners by the end of the year. Hence, the owners of the company should pay special attention towards accounting and payroll department from day one. The company can also choose to outsource their services to some other payroll processors.

Some of the basic advantages of outsourcing payroll processing to other company are:

  1. Time efficient and accurate: when you outsource your business to some other company, you will see that they are on top of it 24×7. You can call them or e-mail them with your employee’s details and they will get back to you with the accurate amount of checks for every employee. You will be able to work on other things while a professional is working over your payroll processing.
  2. Less paper work: as a company, you will have to do paper work on a minimum level. You just have to either call the payroll processing company or just e-mail them with your employee’s details, working hours, benefits etc. They will do the rest for you. You don’t have to perform all the difficult calculations yourself.
  3. On top of the things: payroll processors are always very well versed with all the latest tax slabs, new amendments, deadlines etc. They do not miss any deadlines. They make sure that your employees get their salary checks on time, you pay state, federal as well as Medicare taxes on time. This otherwise can be a very painful job to perform.
  4. No liability: when you hire a payroll professional, you hire them as your consultant. You do not take their liability on your company. It basically serves your purpose as well as make you tension free.
  5. Cost effective: hiring a full time person to do a payroll for you can be a very costly affair. Having said that, when you outsource your company’s payroll processing to some other company you only pay them by the hour. At times, you also pay them fixed amount which is way lesser than hiring an individual for your company.

Outsourcing or in-house, the bottom line is that business owner should maintain their taxes and payroll papers properly. If you still finding it difficult to manage, then you certainly need an expert.

Where to Find Pay Stub Templates For Your New Business

How to Find a Payroll Check Stub Template

In business it is well known that one of the most important elements to running a successful business is paying your employees. Each company that has employees are responsible for tracking the work being performed and subsequently on compensating these employees timely and consistently. As an entrepreneur or business owner, it is your duty to make sure that everything is taken care of when it comes to your payroll operations.

Today we are going to go over a few ways that you can find payroll check stub templates. You can use these templates to independently take care of your own payroll (which will essentially save you and the business money in the long run).

Use search engines

The first (and easiest/quickest) route that you can take when looking for a paystub template is to simply search on the Internet. Search engines such as Google and Bing are amazing resources, which also encompass a plethora of other sources and websites as well. There are a variety of websites and programs (downloadable) that you can utilize and choose at your discretion.

Microsoft Office Accounting templates

If you have an intermediate/expert knowledge of using Microsoft Office programs, then you can simply create your own payroll check stubs. Microsoft Office Accounting is a program that many businesses (independent, small, and medium) utilize on a daily basis. The templates are very easy to use, edit, and even customize to your liking. Microsoft Office programs do cost money, however, the investment in the end will be well worth it if you compare the expenses of doing it on your own to how much you would spend for a third party to do the same exact thing.

Ask small businesses in your area

Being able to go out in your neighborhood and ask for advice from other business owners is pretty common. Although some may be your competition (respectively) when it comes to simple things such as payroll templates, this is not something that would be considered a threat. In addition to asking a business owner that you know, this also fosters a great community environment as well.

Use an Online Service that Provides Paystub Templates

A few online companies that generate paystubs strictly for the purpose of showing proof of income upon employee request, may choose to use an online paystub template provider. Several servicers are available and affordable for this infrequent use.