Although some businesses still practice in-house payroll processing, it often comes at the expense of inaccurate calculations, delayed payments, tax-related penalties, and difficulties staying aligned with state and federal regulations. In-house payroll can also detract from employee time spent on more pressing and high-priority tasks that help a business grow.
Outsourcing payroll grants employers access to expert support and timely, accurate processing that remains fully attuned to regulatory changes and new tax laws. In this article, we’ll explore how a qualified payroll provider can ensure that all of your business’ tax and compliance concerns are handled responsibly and your payroll adapts in real-time to updated regulatory requirements.
Payroll processing is a complex and multifaceted process, which is why many businesses elect to outsource some or all of the key functions to qualified experts. Here are some of the responsibilities that a payroll provider inherits when you outsource payroll:
In addition to specific logistical, financial, and tax-related benefits, outsourcing payroll can also lead to wider benefits for your entire business.
In-house payroll processing requires accounting software, software updates, computer equipment, printing equipment, routine training of staff, and dedicated monitoring of all new local, state, and federal regulatory changes.
Beyond these more obvious expenses, your employees are also left investing valuable time manually processing calculations, deductions, deposits and other payroll data. This invariably leads to time lost on key, revenue-creating projects and increased risk of noncompliance or liability in the event of an underpyament, employee dispute, tax reporting error, or another event.
Outsourcing to a qualified provider significantly reduces costs, increases the accuracy of your payroll, and eliminates employee time spent managing these payroll data and compliance concerns.
While in-house payroll often requires employee training or the extension of job responsibilities for multiple employees, a qualified payroll provider grants your business consistent access to payroll experts with years of experience. Outsourced providers can work confidently across a range of jurisdictions and with a thorough understanding of payroll regulations, tax requirements, and all other compliance-related considerations.
Since local, state, and federal regulations change frequently, it’s essential to have support from a trustworthy provider that can help you adapt to shifts in tax, immigration, anti-discrimination, insurance, and labor laws. This helps your business permanently bypass penalties or audits, but it also leads to improved employee satisfaction, establishing employee trust in timely payments and overall payroll management.
Staying up-to-date with regulatory and legislative changes while handling the day-to-day responsibilities of in-house payroll can be overwhelming. That’s why Workforce PayHub provides payroll and human capital management solutions to help you manage your most valuable asset: your workforce. Our comprehensive payroll solution is designed to support you and your employees so you can focus on your mission and approach each pay period (and tax season) with confidence. Contact us today to let us know how we can support your work.
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