|Introduction to Payroll Solutions|
|Even the most experienced and punctilious human resources professionals find that handling payroll can be troublesome. Increase of potential stiff penalties for tax filing omissions, and it’s becoming a full-blown, financially-induced problem.|
For many businesses, payroll services offer an attractive and valuable alternative to in-house processing. They can provide a less expensive, simpler means of paying employees, filing taxes, and performing other essential but routine tasks.
Very small firms with a stable, salaried staff and minimal changes in tax duties may well be better off processing internally. It may be more convenient and cost-effective for your business. Eventually many employers discover that it is not all that cheap, when they realize the time spent managing the process.
Plus, without the proper knowledge of payroll procedure and access to a qualitative payroll program, it is easy to make mistakes. Employees need to be paid on time, in full scope and in the proper way. Usually, late payments are cause for monetary penalties. And given the continuously changing nature of tax regulations, it is easy to make an error that can greatly change your bottom line.
When to turn to Payroll systems
Although most small businesses in the U.S. still process salaries internally, this is not always as cost-effective as it seems. At minimum, processing payroll internally can cost valuable hours of employee time every pay period plus expensive accounting software and training. In addition, the person who handles your payroll needs to keep up to date on changes in personnel, deadlines, and tax requirements on an ongoing basis.
Payroll outsourcing can be a possible way to remove this problem. If your employees work varying amounts of hours each week or if you have significant turnover, a payroll service can be a cost-effective and time-saving alternative to internal payroll.
Using a payroll service can also be helpful if you have to pay taxes for multiple states. Even if your payroll expenses are quite stable, companies with more than 10 employees may find that the time saved by outsourcing payroll, lowering the expenses.