Tag: payroll outsourcing

5 Tips On How To Choose A Payroll Services Company

The IRS penalizes about one out of every three business owners for payroll errors. The Department of Revenue has a similar ratio of penalties to business owners. The number 1 reason you outsource your payroll to a professional payroll services Australia is to stay compliant with the IRS and Australia.

Why should you outsource?

Even if you are not making mistakes handling your payroll internally, you still are wasting your most valuable asset, time. Time is the 2nd reason you should outsource your payroll services. Your time equals money to your business and even if delegate the responsibility to a member of your staff, there are some additional things you need to be concerned about. Their time doing payroll is money lost to your business. Not only do you have to pay their salary or rate of pay, but you have to pay the employer tax expenses, workers compensation, and employee benefits.

The worst case scenario you have opened yourself up for potential fraud. Internal payroll fraud is more common in small businesses because there is not a high level of security with bank accounts, access to checks, signature stamps, social security numbers, addresses and other personal information. All of this gives you my third reason which is having the peace of mind that your employees are paid and taxes are filed accurately and on time. Read more!

So how do we choose a payroll outsourcing Services Company?

When choosing a payroll company, there are 5 things you need to know.

  • Financial Protection – Ask your payroll company to provide proof that they are bonded and insured. You want to know if your payroll service provider makes a mistake, that they responsible for fixing their mistakes.
  • Disaster Recovery and Backup Strategy – Ask your payroll services Australia what their backup plan is if there was any kind of disaster (example: Fire, flood, computer virus, and power and phone failure). Where is your information backed up and stored? How quickly can they be up and running again if there was a disaster?
  • Customer Service – The person who handles your payroll is more important than person selling it to you. Ask who is going to be handling your payroll? Remember a salesperson job is to sell you, and they are trained very well to do so! You should ask to speak with the specialist that you will be working with to see how you like them and find out their level of expertise in the industry. Ask for some reference of clients that they are currently working with. Find out if your specialist temporary or permanent? Some of the larger payroll services are Payroll services Australia and call centers. Ask yourself if that is the kind of service you want. You should feel comfortable and confident that if a problem does happen, your specialist can get it fixed quickly.
  • Pricing – The payroll industry has changed drastically over the years from al carte to bundled pricing. Most payroll outsourcing companies bundle all of their services to give you a per pay period fee based on the number of employees you have and your frequency of pay. There are additional charges for delivery, and year end processing and W2s as well. Since the payroll industry has gotten very competitive make sure you ask your sales person if there is a discount applied, and when it runs out.

Some of the larger national payroll vendors and franchises have introductory rates, specials, and free months. Buyer beware! These specials end and discounts disappear and annual increases occur. Remember you are being sold by a highly trained salesperson that gets paid if you run your payroll, not if you stay. Ask them to put it in writing and email to protect yourself, and if you really want to get creative, ask them to have their direct manager or boss sign off on the proposal as well.

  • System Integration of Employee and Employer Benefits – Most payroll outsourcing companies can offer additional services such as Employee Access Online, Pay-As-You-Go Workers Compensation, 401k, HR Solutions, Health Insurance and Time and Attendance Solutions. When choosing your payroll provider, make sure that you choose a company that can grow with your business.

Follow these 5 simple steps when choosing your payroll company and you will save your company time and money! For more details read our article: https://www.ruckmanhaus.com/six-tips-for-outsourcing-your-small-business-payroll-operations/

Six Tips for Outsourcing Your Small Business Payroll Operations

Payroll outsourcing services are very common these days. Both small and large organizations look for outsourcing payroll services. Small organizations are still very reluctant to outsource payroll services because they think that it’s costly to outsource. Therefore still a single person manages all the things. But one must not forget that outsourcing companies have professionals that can do your payroll work in the best possible way. A part from this, they can show you that ways where the improvement is needed and where to curtail expenses. Not only this, they will help in different tax matters as well as in decision making. Outsourcing payroll is the choice of all smart business owners.

Some fiscal as well as operational benefits of outsourcing payroll services:

Some very important fiscal and operational advantages of payroll outsourcing are discussed in the following lines that will help you to make a rational decision.

  • Reduction in IRS penalties:

Usually small companies face IRS penalties when they fill the payroll taxes inappropriately. On the other hand outsourcing experts saves you from such penalties.

  • Cost Reduction:

If you opt to hire a staff for managing your payroll, you will certainly bear a huge overhead cost. But the outsourcing payroll can save your money as well.

  • Provides Direct deposit to your employees:

Outsourcing companies provide direct deposits to your employees. Otherwise you get tired of managing all the paper work and reconciling different items.Six Tips for Outsourcing Your Small Business Payroll Operations

  • Institutional knowledge:

Experts usually have all the knowledge about the prevailing interest rates, tax rates and other matters because they are in that particular field and manage the payroll of different companies. So the vast knowledge you can’t acquire that they have. So take benefit of their knowledge and hire them.

You can hire payroll experts at any time but when there is time to calculate the complicated tax matters, then you must approach them for help. Moreover, if you are having a staff of 20 people and they are managing a payroll for you, then it’s time to look for the services of outsource companies; because in this way you are not going on the track of cost effective policy. Such a huge staff for managing payroll is just increasing cost. Go for the alternative and hire the payroll experts vis outsourcing. Checkout your payroll cost on https://www.ruckmanhaus.com/do-you-know-the-true-cost-of-your-payroll-operation/

6 tips for payroll outsourcing:

The following mentioned tips can prove very vital for the owners of small organization while choosing the right payroll expert:

  1. Check for the professional qualification and experience of the payroll expert.
  2. Check for their response time and communication
  3. Check their capability for managing tax matters and letting you free from different penalties
  4. Check and shop around the fee and charges
  5. Check for the privacy as well. Is your sensitive payroll data is secure with them or not?
  6. Check and ask for permission and references to contact them in case of need or trouble.

Concluding the above discussion we can say that payroll outsourcing is best all aspects.

Do you know the true cost of your payroll operation?

Have you considered Payroll outsourcing? You aren’t alone. What usually stumps people is trying to do the cost comparison between using a payroll product and managing their own payroll. If you’re self managing, it’s probably even worse- you probably have no idea how to adequately asses your costs to make a reasoned and measured decision on your processes.

Think of the hard questions first.

Firstly, you won’t get very far in the cost assessment process of your payroll services if you don’t know what data you need to asses. Do you need to know how many people you need to adequately work your payroll in time? Are you more interested in statistics like what proportion of workers are paid at what intervals? Or are you deep into the nitty-gritty of administration and looking for information on acceptable error rates and whether reporting to the HR or finance departments work best? There’s a host of questions revolving around the issue of payroll, and it’s critical to know which interest you most when trying to asses your payroll situation.  Click here for outsourcing payroll duties.

Do you know the true cost of your payroll operation?

Isn’t payroll services a fixed cost?

In theory- and in most people’s mind- payroll is a fixed cost. However, that’s not true, and an efficient payroll service will likely help you make considerable improvement in this matter. Incorrect payroll calculations may well cost you a great deal of money every month. So can compliance issues. These may be small amounts per person, but they add up considerably across the company. Remember that some workers are paid as casual workers, while others have a complicated package of benefits, allowances, perks and commission to be considered, and many of these figures may well shift monthly. It’s vital that you make sure these are being calculated correctly at all times. Learn more about payroll shared services.

How can I optimise my payroll?

Obviously, if your firm is large enough to support a payroll or financial department, it’s vital that steps are taken to ensure the cost of little mistakes does not add up quickly across the board. Audit procedures, a 2 step checking and compliance process and the use of suitably qualified professionals should all ensure that this occurs. If you’re a smaller business, however, this can be considerably more work and effort- as well as cost- then is strictly necessary for the size of your payroll.

Payroll outsourcing may well be the best answer for your issues. By outsourcing your payroll to a specialist company, you will be incurring a set monthly fee instead of having to find the salary for another staff member who may not be fully utilised through the month. Likewise, by choosing a firm of professionals you will be ensuring that compliance issues and small, easy to make mistakes if you are uninformed do not occur. This way you will keep your costs down and your profit up.

With the costs of taking on extra personnel second only to the costs incurred by them not doing their job properly, outsourcing payroll in Australia makes sense for smaller and medium enterprises.

Best 5 Reasons Why You Should Outsource Payroll

There are many reasons as to why payroll outsourcing is important to your business. Some say different things than others but for the most part, all the reasons are the same. If you are a business that does not use outsourcing payrolls, you might want to consider doing so within the near future. This will enhance the productivity of your business and aid in the security of your finances. Learn more about small business payroll operations.

What is Payroll Outsourcing?

Payroll outsourcing is when a business hires an external firm to handle all payroll functions to save time and money while reducing fraud within the company, enhancing security and maintaining compliance with government regulations. Using payroll outsourcing usually costs less than hiring and training additional employees for this task. Seeking services from outsourcing payroll services can reduce the risk of legal errors, thus leading to legal protection of the business. Monthly or quarterly employment tax reports are managed by the payroll service, ensuring they are submitted properly and on time. Payroll providers may assume penalties that come as a result of incorrect tax calculations and end-of-year paperwork such as W-2s and 1099s. These are handled by the payroll provider as well.

Time and Money Saved

No matter how many individuals are employed by your business, payroll demands can be very time consuming and can take you away from other important issues happening within your business. Payroll outsourcing will allow you to attend to issues elsewhere in your business rather than crunching numbers yourself. If you are inputting numbers yourself, and you are concerned about another area of your business, this can then lead to errors within the process. With all this time spent inputting numbers and making sure they are accurate, this wastes money as well. Time is money and if you are spending a significant amount of time with payrolls, you are losing money. This will cause your business to weaken and could lead to your business failing.

Enhanced Security, Compliance with Government Regulations and Expertise of Professionals

When handling payroll administration in-house your business is at an increased risk of embezzlement, identity theft and other fraudulent activities. With this, if you consider payroll outsourcing, a company that provides these services has performed an extensive background check on their employees and knows that most are qualified for this line of work. These companies know exactly what to look for when screening potential employees and this will reduce your risk of fraud. The employees that are hired by the outsourcing company have experience in the line of work. Not all business owners know all about the government regulations; however, hiring outsourcing companies will assist you in anything you may need for your business.

There are many reasons to choose outsourcing payroll and if you do, it will greatly benefit your business. You will save time and money and you can tend to all the needs of your business without worrying about the payroll. Payroll outsourcing will have your company in good hands and your finances dealt with professionally and with little to no error.