Small businesses and Payroll process management
Often, payroll and HR are the last departments in a small business to have dedicated teams, because the processes are deemed to be straightforward enough for existing employees to handle; which isn’t the case! The crucial role that payroll plays in any company cannot be underrated. After all, it is the department that deals with all the important payments - salaries and taxes.
Suppose 2 employees, who are already handling their own duties, are also managing payroll. Are they adept at it? Do they know the regulations and labor/tax laws? Are they proficient in salary and tax calculations? They need to be, to ensure timely payments, sustained productivity, and positive image, and safety from penalties or fines.
Outsourcing payroll for better productivity
In the aforementioned example, the employees are managing an entire department besides their own duties. Taking care of taxes and salaries to be paid correctly and on time each month requires a lot of time and effort. And if employees are already dedicating their time to other work along with payroll, the productivity level goes down. To counter this, outsourcing payroll services is a good solution. Let’s take a look at the benefits of outsourcing payroll to increase productivity in small businesses.
Outsourcing payroll services help businesses reduce the costs of labor as well as legal penalties. Wrongful or late payment of taxes attracts penalties and fines that can be costly for a small business that’s running on a limited budget. A dedicated payroll team can save this expense for you by filing taxes correctly. The same goes for your employee payments; payroll experts can help you find glitches in your employment plan where you are paying extra. This can help you make cuts such that there isn’t a loss in value or productivity in the work.
You can better manage and allocate the time and effort of your employees to their own duties, and the same goes for employees as well. Everyone can focus on the tasks at hand and give their undivided attention. Multitasking works, but not all the time. Singlehandedly focusing on one task always improves productivity. When payroll is outsourced, there’s a team of experts that takes care of the entire process seamlessly, while you and your employees can focus on duties that you undertake for growing the business further.Maintaining a happy workforce
When do employees tend to lose their productivity? Well, when they are unhappy with the company. And when are employees generally unhappy with the company? When they aren’t paid correctly or on time. Improper payment of salaries can lead to a negative in the minds of employees. Likewise, when HR and payroll departments are not in place, employees have no sounding board or grievance addressing system for their issues. All this creates a negative image of the business in their minds.
And if employees aren’t happy with the company, it will definitely cause their productivity to take a backseat. Hence, payroll outsourcing helps. Employees are paid correctly and on time, are given different modes of payment to choose from for their salaries, and it shows that the company also values the services they are providing it.
How to know which company provides the best payroll service for small business needs?
The time that is dedicated behind payroll is a significant amount and more so if you are a small business owner. It is very essential to find out the payroll services for small companies that can provide their services according to the need. There are a few factors that you need to look out for before you hire for payroll services.
Firstly, you need to check for the cost they are going to charge for their services. For small business owners getting the job done within an affordable range is a must. Most companies not only charge on a monthly basis but also charge an additional fee for their employees, and there might be other extra costs attached as well. You should carefully analyze all these prices and then decide to choose the service providers.
Secondly, and one of the most important factors that you should check for is whether the payroll solutions for small businesses can process the state level as well as the federal level tax filings and deductions. They should be apt at handling different types of regulations for the taxes in that particular area. The management of the service providers with regards to tax processing should be thoroughly scrutinized.
Thirdly, it is important to check that the company you choose to partner with should integrate with the accounting software and HR systems. When the payroll providers integrate their services with different types of accounting software platforms then that provides you with more control and great flexibility and good results. Paysquare payroll outsourcing services provide you with all these solutions and are a trustworthy brand every time.
As a small business, the focus should mainly be on growing it further and getting more clients. Managing payroll is not an easy task; it takes time, a lot of studies, and is still fraught with the possibility of errors that are costly. Outsourcing puts this task into the hands of experts, who know their way around the process and regulations. This saves a lot of employee time spent in juggling two department duties; and also the possibility of making mistakes. All this, ultimately, leads to increased employee productivity, which is the most important factor for success.
Payroll services for small businesses
According to a survey it has been seen that 1 out of 3 companies get charged penalty fees or fine for payroll errors by the IRS (Internal Revenue Service). These amounts keep on adding and a lot of your energy and time is wasted behind understanding the complicated payroll system. Hence a lot of small business owners prefer to pay for payroll services for SMEs and hire specialized people to get the job done.
This way the chances of clerical mistakes or calculation errors or legal mistakes can be avoided and a lot of time can be saved. It is important that small business owners choose the best payroll services for startups. There are different payroll services to choose from and the factors enlisted below are the ones you have to look out for in the service that you choose from:
- The very first thing you need to verify is the features that the company has to offer. There are many companies that provide their services without any additional costs, but there are also a lot of companies that charge additional fees beyond the basic services that they provide. HR services are very beneficial for a small company that usually cannot afford an extra employee for HR services. Many payroll companies provide HR services along with their basic package. Many companies charge extra for the HR services provided and it is advisable that you check with the company before hiring their services.
- One of the most important factors to always keep in mind is whether the payroll vendors you are signing up with is affordable and fits well within your budget. Being a small company owner can be tough and you have to don many hats at the same time. In that case, it is extremely important for you to choose your payroll service provider very carefully. There are many payroll services for small companies that charge reasonable rates for the basic plan of features and along with that they also provide additional features without charging much extra. However, there are also a lot of companies available in the market that have separate rate charts for their basic plan and additional features being provided.
- If you are planning on purchasing a payroll software application for your company then you should try and make sure of the fact that it is easy to use and handle. Being the owner of a small business it isn’t always easy and feasible to spend time trying to understand the working of a software application that is too complicated. You should be careful of the fact that the product that you are purchasing can be easily installed and ready to use in a short period of time.
Factors that matter in outsourcing your payroll services:-
Advantages and disadvantages of outsourcing payroll services plenty in number. While it might be very tempting to handover the responsibilities of payroll to an outsider company, there are a lot of additional factors that you have to start thinking and contemplating.
For example, the company that you choose to outsource your payroll is an extremely crucial step and can make or break your company. If the company is able to deliver according to expectations and work efficiently then it will not only save time for your company but also increase the overall productivity of your company. However, the wrong choice can prove to be disastrous and sometimes detrimental to your company. Hence this factor should always be considered very carefully before outsourcing your payroll.
To elaborate more on the previous point, there are a lot of payroll vendors out there who have a lot of other services to offer and lure companies into subscribing to their all-inclusive packages whereas, in reality, the additional features that are being offered might not turn out to be that beneficial for the company. This results in unnecessary loss of money behind useless features. Hence, it is advised to check for the proper features and offers being provided by the payroll service provider.
Outsourcing your payroll services can prove to be an extremely intelligent and efficient step in boosting the overall growth and productivity of the company, but if and only if the measures taken are calculative well thought out. If it is done in the right way by making use of proper services from a genuine provider, it can turn out to be a great foot forward in the right direction for building your small business towards something big.