Payroll outsourcing is a business
practice that involves contracting with a business service to handle all
functions related to a company payroll. By outsourcing the service to another
company makes it possible to manage the payroll process without requiring maintaining
a large payroll department. Payroll service providers manage such
diverse functions as the calculation of wages and salary, withholding of
taxes, the distribution of withheld funds to the government agencies, and the
direct deposit of net pay into the bank accounts of employees.
Few reasons why a company may choose to go
with a payroll outsourcing option:-
a)
Payroll processing by hand is a
time-consuming process. Outsourcing payroll can free up staff time to pursue
more important value-added and revenue-generating activities.
b)
Direct costs of processing
payroll can be greatly reduced by working with a payroll provider.
c)
Manual payroll is a headache in
the best case and a nightmare in the worst case. Business owners who outsource
payroll eliminate a tiresome source of personal pain.
d)
By outsourcing it is possible
to restrict the payroll team to one or two individuals or may be no one
required to handle it within the organization.
e)
No need for anyone to spend a
majority of the workweek calculating hourly wages, taxes, and dealing with
various types of withholding issues.
f)
A constant question for small
business owners is whether they have the latest version of their payroll
software and the most recent tax updates installed on their computer. Using the
wrong tax updates can result in stiff penalties.
Payroll outsourcing also prevents an employer
from having to deal with technology woes. Since the payroll is processed
off-site, there is never a need to upgrade payroll software or spend time and
money on program or hardware glitches or any of the system issues that can
occur and slow down the payroll process. As a result, employees are
consistently paid on time and remain happy.
While payroll outsourcing does mean incurring
another business expense on a regular basis, even small businesses often find
that using this type of service saves time and money each month. Most outsourcing vendors will offer several different payroll
plans that are likely to be ideal for businesses of different sizes. In terms
of convenience, keeping the payroll records up to date, and keeping the
withholding accurate, going with a payroll outsourcing service just makes
sense.
BBW Business Services offers this service.
We offer tailor made solutions to fit your budget after understanding your
requirement. For more details visit us at http://bbw-services.com
