Any business' administration has its basic part. And this is payroll, where precision is supreme. Payroll mistakes can have essential financial and legal results for employers. That's why assuring filing deadlines and deposit requirements are met. So, two of the biggest challenges Human Resources departments face are understanding and changing payroll laws. Besides, payroll mistakes can cause impairing employee confidence and morale.
Many businesses, having a great desire to minimize the complexities of the payroll process, are turning to payroll outsourcing while saving time and money. Innovative Employee Solutions® (IES) recently interviewed one of its clients, Normand Chartrand, Vice President of Finance and Administration for LTRIM Technologies, about the advantages of payroll outsourcing.
The complexities of payroll
Being a monotonous, payroll process, requiring precise record keeping, timely check disbursal and pliability with applicable laws. Key challenges in the payrolling process include:
• Essential time requirements. According to Business Week, "processing your own payroll requires 54 steps and eats up between 40 to 60 hours each year, even for two-employee companies". Calculating payroll amounts and deductions is a detailed, time-engrossing process. That's why it is easy for employer to make mistakes in payroll processing.
• Legal pliability. Adhering to the latest tax duties and staying updated on changing legislation can be a complex process, involving the time-engrossing task of keeping track of the latest regulations and withholding tables. As payroll laws tend to vary from one state to the next, this practice is particularly complex for business with a dispersed workforce.