What is Payroll Outsourcing?It is transferring the routine operational matters, regarding payroll management, to external experts who specialize in these areas. Outsourcing the payroll function ensures that the statutory compliance and basic procedural matters are taken care of. According to smallbusinesstrends: 'There are the obvious legal requirements, such as tax reporting and remittance. There are requirements around withholding taxes from the employee’s pay, and also calculating the employer’s portion of taxes. In some cases there are electronic filing requirements. You need to also know when to file — at the federal, state and local levels.' This clearly brings about the importance of payroll outsourcing.
Why Outsource the Payroll Function?
- Routine hiring tasks like advertising vacancies, getting applications, sorting candidate profiles, and conducting interviews and tests are time-consuming. Once you outsource the payroll function, your agency takes care of these tasks.
- The payroll agency you engage takes care of hiring, compensation packages, maintaining attendance records, legal and statutory obligations, tax deductions etc.
- Outsourcing payroll can also help cutting costs and limiting risks. Today, businesses with a minimum number of employees can outsource payroll at minimal cost.
- To ensure that you are up-to-date with the current technology and can access employee records anytime.