making tax withholding payments, administering employee benefits and bonuses, withholding social security and pension contributions and distribution of payments through direct deposit to employees account or by Cheque.
The question of when to outsource payroll depends on many factors, such as the number of employees on assignment, whether a company has a local entity and the complexity of the host country laws regarding employment and withholding. Also, depending on the needs of an organization, a payroll service provider may customize the payroll services that they outsource.
Generally, the process of outsourcing may differ somewhat depending on the organization but the basic process of outsourcing payroll includes; agreeing on terms of engagement, ensuring all essential registrations are in place, acquiring necessary employment and business information, processing payroll at regular intervals, and reporting to the client as agreed.
Evidently, payroll processing is a sensitive subject dealing with highly confidential information. It is also an integral part of running a smooth organization, however, the process is quite involving and can be a daunting one for many organizations hence the need to outsource payroll.
Below are some of the benefits that come with payroll outsourcing;
- Payroll processing can be time-consuming especially because every company has to keep track of benefit deductions, new hires and terminations, paid time off as well as state regulation changes. Regardless of the number of employees of a business, attending to payroll demands a great deal of time and attention to detail and this can be frustratingOutsourcing payroll enables employers to concentrate on their core business and liberates the business owner, human resources or accounting personnel to work more on strategic tasks that could ultimately help the business achieve its objectives or goals.
Team of Experts
- Aside from the fact that most business owners and payroll staff do not have in-depth knowledge on payroll processing, others do not have time to research and study constantly changing regulations, withholding rates, and government forms. Most valuable payroll companies have a team of experts who handle many areas of Human Resources and Payroll and as such by outsourcing payroll, a small business can take advantage of the expertise that was previously available only to big organizations.
- Payroll processing is complex and sometimes risky. Even with trusted employees, there is a risk of embezzlement of funds and identity theft. In addition, how safe and secure is payroll data on the company’s server? Do organizations really have the time and energy to closely supervise their business’s payroll against unethical activities? Outsourcing Payroll services gives organizations the opportunity to make use of technologies that can spot and alert clients to various types of payroll fraud. It also offers a “safe haven” for an organization’s confidential payroll data.
- Payroll software upgrades the overall work processes and systems of your company. Enjoying real-time tracking of all activities, keep up live representative information, screen, and guarantee tight security. Every one of these improves your company’s productivity and gives better outcomes.
- An organization can drastically reduce the direct costs of processing payroll by working with a payroll provider. Big organizations might be able to afford to maintain payroll departments. However, small or medium-sized organizations, that have an in-house payroll process is actually cost-consuming. Organizations must figure out how many labour hours employees are devoting to payroll-related activities, the wages, and the benefits these employees are paid compared to outsourcing the payroll services.
Organizations should consider outsourcing payroll services in order to focus on their core business. You can contact The Capital Group Limited for assistance on +233-302-670991-2 or +233-302-674697 or Email: a passionate and dedicated team that uses the latest tools and technology to manage the payroll process in a timely and efficient manner.