Tuesday, December 1, 2009

Take Full Advantage of Services Offered by Your Payroll Vendor

Most business owners realize the obvious benefits of outsourcing payroll, such as saving money—outsourcing can save your company up to 30% over the cost of in-house processing—and saving time. But you may be unaware the many things your payroll service can take off your hands, from annoying little tasks, to key procedures, such as:

  • Paycheck processing for multiple company locations can be easily handled by your payroll supplier. Some vendors have a branch in every major city. Smaller suppliers will distribute paychecks to multiple locations via an overnight delivery service.
  • Direct deposit, a feature that most employees appreciate, and that smaller businesses are unable to offer through an in-house system. Funds deposited directly into employees’ bank accounts are often available a day earlier than a paper check would be.
  • Check stuffing, for those employees who prefer a paper check; your payroll service will handle the time-consuming chore of printing checks and placing them in envelopes.
  • Special reports. Ask your payroll vendor for a list of their report-writing packages. This service can be of real value if your company needs any type of specialized report. Again, many in-house payroll systems do not have this capability.
  • Data backup. You won’t need to be concerned about losing payroll information, because most payroll providers back up their data regularly.
  • New employee reports. The law in most states requires businesses to file a report for each new hire. Your payroll service can compile the data of all your new employees and submit this information to the government electronically.
  • Tax services. Save yourself the anxiety of possible penalties due to inaccurate tax payments by having your payroll provider remit all employee taxes.
  • Expertise. You will have a team of payroll processing experts at your service. Your payroll provider will usually be able to answer your questions over the phone, and some will even come to your location for a consultation.

These are just a few of the services your company can take advantage of when you outsource your payroll. Your provider can also take over many processes normally handled by your human resources department, such as the administration of 401k plans and other benefits, saving your company even more labor dollars.