Payroll outsourcing service refers to hiring an external party to take care of all the activities related to payroll including, salary processing, taxes, deductions and more. The Payroll outsourcing service providers cater to the payroll needs of all firms irrespective of their sizes and business models.
These days, most of the companies out there prefer to outsource payroll in order to dodge tiresome and time-consuming payroll management responsibilities. This saves them time and money. It is because, with a payroll service provider, the company does not have to hire and train resources to handle payroll. In short, it does not have to manage an in-house team for payroll management.
Payroll system automates the entire payroll process, allowing businesses to simplify and streamline payroll administration. It reduces paperwork and eliminates manual errors, allowing payroll managers to complete payroll processing as soon as possible.
Contractor payroll software comes in handy to digitize payroll for independent contractors otherwise known as freelancers. Payroll software for contractors saves a lot of time and manpower for companies that hire them to cater to their business needs at large.
Components of Payroll Outsourcing Services
Payroll outsourcing services handle all activities, from employee onboarding to tax filing. Here is an account of the major roles and responsibilities of the payroll outsourcing service provider.
Payroll management involves a lot of paperwork and maintenance of records. Your payroll service provider generates and manages comprehensive payroll reports for future reference.
When the company hires a new employee, it is the payroll service provider who takes care of all the onboarding formalities.
Employee Database Maintenance
The payroll specialist views and updates employee information from time to time for hassle-free payroll processing.
The service provider keeps track of the entry and exit times of each employee regularly and processes payroll, makes deductions accordingly.
Payroll outsourcing services track paid time off for employees including casual leaves, sick leaves, restricted holidays and permissions.
Payroll outsourcing services take care of periodic deductions towards various employee benefits including healthcare insurance, retirement plan and much more
The external party maintains consistent records of tax payments to the governmental authorities on behalf of the organization.
Perks of Payroll Outsourcing Services
Take a look at the benefits you get when hiring a reliable payroll outsourcing service provider below.
Payroll management is a complicated process which requires constant and close attention. It consumes all your active hours leaving very less to no time to see to your core business activities. You cannot let it happen because it will lead to a decline in your business opportunities in the long run.
On the contrary, taking the help of full-fledged payroll services takes away the headache of managing the complex payroll activities on your own. This, in turn, allows you to spend more time on your actual business, showcase maximum productivity and provide enhanced service to your customers.
If you are a business owner maintaining a separate internal team for human resource and payroll management, you are overspending. Yes, a payroll service provider can handle all these responsibilities for you in a more efficient manner, maintain utmost accuracy and still can be an economic option.
Even minor mistakes in payroll management leads to big problems. No matter how small or big your company is, in-house payroll handling opens doors to errors. While it is a pain to find out the source of the issue and sort it out every time there is a mistake, the company has to bear penalties to governmental authorities in case of a discrepancy in the records submitted to them.
This does not happen when you outsource payroll from a good payroll service provider. Backed by field expertise and experience, it is the core responsibility of the service provider to manage payroll to perfection with no room for errors that lead to penalties.
Payroll comes with an inclusion of confidential information of both the company and its employees. So, you need to equip yourself to combat multiple cybersecurity threats. However, the possibility of executing this at your workplace is limited chiefly because the advanced technology tools cost way too much.
On the other hand, a payroll outsourcing service provider will have access to the said expensive technology tools because they handle the payroll information of multiple firms at once and it is not a choice but a necessity for them to enable advanced security to keep hackers at bay.
Identifying the Best Payroll Outsourcing Service Provider
Ask these questions to find out the right payroll service provider who can address all your payroll management needs.
How often do they update their tax tables?
Your payroll service provider has to be someone who updates their tax tables as and when a new tax bill is implemented.
Do they have clients from your industry?
Even if the basic payroll structure looks similar, it differs from one sector to the other. It is because everything from local laws to taxation parameters vary from industry to industry. So, it is essential to make sure that the service provider has experience in handling payroll for companies like yours.
Can they support you if your organization grows?
Verify if the payroll management specialist can still cater to your payroll requirement even if your company size increases in future.
What are their security measures?
Discuss with the payroll outsourcing service provider and get a bigger picture of their safety measures to eliminate data breach.
How Multiplier Can Make A Difference
Multiplier is a fully equipped technology platform that can cater to all your payroll management requirements.
The platform ensures 100% statutory compliance with both local and international laws allowing you to onboard new employees across the world, manage remote teams and scale up your business in a seamless way.
You get end-to-end transparency in payroll management. Our powerful technology platform guarantees error-free salary processing and deductions followed by one-click approval from you.
With top-notch security protocols, Multiplier extents supreme protection to your confidential business data against cybersecurity attacks.
Keep away from the stress of complex HR payroll management without compromising on safety standards, pay your employees on time and put a big smile on their faces by availing payroll outsourcing services.
Looking for a trusted technology partner to manage your company’s payroll efficiently? Get in touch with us at Multiplier today.